During the first month of operations ended May 31, 2013, T-Shirt Express Company produced 37,000 designer T-Shirts, of which 34,300 were sold. Operating data for the month are summarized as follows:

During June, T-Shirt Express Company produced 31,600 designer T-shirts and sold 34,300 T-shirts. Operating data for June are summarized as follows:

1. Using the absorption costing concept, prepare income statements for (a) May and (b) June.
2. Using the variable costing concept, prepare income statements for (a) May and (b) June.
3. 

a.   Explain the reason for the differences in the amount of income from operations in (1) and (2) for May.

b.   Explain the reason for the differences in the amount of income from operations in (1) and (2) for June.

4. Based on your answers to (1) and (2), did T-Shirt Express Company operate more profitably in May or in June? Explain.

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Sales Manufacturing costs: Direct materials.. Direct labor ... Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $343,000 $210,900 57,350 26,640 319,310 24,420 $ 16,464 28,469 12,005 Sales ... Manufacturing costs: Direct materials . Direct labor ... Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed . $343,000 $180,120 48,980 22,752 276,272 24,420 $ 16,464 12,005 28,469