Absorption and Variable Costing Income Statements for Two Months and Analysis

During the first month of operations ended July 31, Head Gear Inc. manufactured 24,700 hats, of which 23,000 were sold. Operating data for the month are summarized as follows:

Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 24,700 hats, of which 23,000 were sold. Operating data for the month are summarized as follows Sales Manufacturing costs $216,200 Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost $133,380 34,580 17,290 14,820 200,070 Selling and administrative expenses Variable $11,500 Fixed 8,400 19,900 During August, Head Gear Inc. manufactured 21,300 designer hats and sold 23,000 hats. Operating data for August are summarized as follows: Sales Manufacturing costs $216,200 Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost $115,020 29,820 14,910 14,820 174,570 Selling and administrative expenses Variable $11,500 Fixed 8,400 19,900 la. Prepare an income statement for July using the absorption costing concept. Enter all amounts as positive numbers. Head Gear Inc. Absorption Costing Income Statement Cost of goods sold: 1b. Prepare an income statement for August using the absorption costing concept. Enter all amounts as positive numbers Head Gear Inc. Absorption Costing Income Statement For the Month Ended August 31 Cost of goods sold: 2a. Prepare an income statement for July using the variable costing concept. Enter all amounts as positive numbers Head Gear Inc. Variable Costing Income Statement For the Month Ended July 31 Variable cost of goods sold: Fixed costs: 2b. Prepare an income statement for August using the variable costing concept. Enter all amounts as positive numbers. Head Gear Inc. Variable Costing Income Statement For the Month Ended August 31 Variable cost of goods sold Fixed costs