1031 Chapter 20 Variable Costing for Management Analysis Toplin B. Income 22.000 from operations $18,522,000 EX 20-3 Income statements under absorption costing and variable co Joplin Industries Inc. manufactures and sells high-quality sporting good its highly recognizable J-Sports logo. The company began operations on at 100% of capacity (270,000 units) during the first month, creating an end 24,000 units. During June, the company produced 246,000 garments during 270,000 units at $300 per unit. The June manufacturing costs and selling expenses were as follows: osting and variable costing Obj. 1 quality sporting goods equipment under began operations on May 1 and operated month, creating an ending inventory of ced 246,000 garments during the month but sold The June manufacturing costs and selling and administrative SHOW ME NOW Number of Units Unit Cost Total Cost Manufacturing costs in June 1 beginning inventory: Variable...... Fixed ........... Total ................ 24,000 24.000 $150,00 32.80 $182.80 $ 3,600,000 787,200 $ 4,387,200 246,000 246,000 $150.00 36.00 $186.00 $36,900,000 8,856,000 $45,756,000 Manufacturing costs in June: Variable.... Fixed Total Selling and administrative expenses in June Variable Fixed ....... .... Total .......... 270,000 270,000 $45.00 3.60 $ 48.60 $12,150,000 972,000 $13,122,000 A. Prepare an income statement according to the absorption costing concept for June B. Prepare an income statement according to the variable costing concept for June. What is the reason for the difference in the amount of income from operations reported in (A) and (B)? C