On June 30, 2008, the end of the first month of operations, Kristen Candle Co. prepared the following income statement, based on the variable costing concept:

Prepare an absorption costing incomestatement.

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$240,000 Variable cost of goods sold: Variable cost of goods manufactured (22,000 units x Less ending inventory (2,000 units $8 per unit) . 16,000 160,000 80,000 14,200 S 65,800 Variable selling and administrative expenses. . . Fixed costs: Fixed selling and administrative expenses . .. . .......23,400 53,100 12,700