1a. Prepare an income statement for May using the absorption costing concept. Enter all amounts as positive numbers.

1b. Prepare an income statement for June using the absorption costing concept. Enter all amounts as positive numbers.

2a. Prepare an income statement for May using the variable costing concept. Enter all amounts as positive numbers.

2b. Prepare an income statement for June using the variable costing concept. Enter all amounts as positive numbers.

Absorption and Variable Costing Income Statements for Two Months and Analysis

During the first month of operations ended May 31, 2015, T-shirt Express Company produced 21,900 designer T-shirts, of which 20,800 were sold. Operating data for the month are summarized as follows:

Sales			$137,280
Manufacturing costs:
Direct materials	$83,220
Direct labor	21,900
Variable manufacturing cost	10,950
Fixed manufacturing cost	8,760		124,830
Selling and administrative expenses:
Variable	$6,240
Fixed	4,560		10,800

During June, T-shirt Express Company produced 19,700 designer T-shirts and sold 20,800 T-shirts. Operating data for June are summarized as follows:

Sales			$137,280
Manufacturing costs:
Direct materials	$74,860
Direct labor	19,700
Variable manufacturing cost	9,850
Fixed manufacturing cost	8,760		113,170
Selling and administrative expenses:
Variable	$6,240
Fixed	4,560		10,800