Unit Number of Units Total Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $275.00 $5,500,000 520,000 Fixed 20,000 26.00 Total $301.00 $6,020,000 Manufacturing costs in February Variable 130,000 $275.00 $35,750,000 Fixed 130,000 30.00 3.900.000 Total $305.00 $39,650,000 Selling and administrative expenses in February Variable $20.00 $3,000,000 150,000 150,000 Fixed 1.30 195,000 Total $21.30 $3,195,000 a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Sales Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Operating income Foodtak Check My Won a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead. b. Prepare an income statement according to the variable costing concept for the month ending February 28. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Foodbak Unit Number of Units Total Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $275.00 $5,500,000 520,000 Fixed 20,000 26.00 Total $301.00 $6,020,000 Manufacturing costs in February Variable 130,000 $275.00 $35,750,000 Fixed 130,000 30.00 3.900.000 Total $305.00 $39,650,000 Selling and administrative expenses in February Variable $20.00 $3,000,000 150,000 150,000 Fixed 1.30 195,000 Total $21.30 $3,195,000 a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Sales Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Operating income Foodtak Check My Won a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead. b. Prepare an income statement according to the variable costing concept for the month ending February 28. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Foodbak