Absorption and variable costing income statements

Show your work for partial credit.

During the first month of operations ended May $31,2020,$ Frost Point Fridge Company manufactured $40,000$ mini refrigerators, of which $36,000$ were sold. Operating data for the month are summarized as follows:

Sales

$................$ $$6,480,000$

Manufacturing costs:

Direct materials

$.........$ $$3,200,000$

Direct labor $.............$ $$1,120,000$

Variable manufacturing cost

$.........$ $$880,000$

Fixed manufacturing cost $............................$

$.........$ $$560,{000}_{\text{\$}}5,760,000$

Selling and administrative expenses:

Variable $............................................$

$.............$ $$648,000$

Fixed $..............................................$

$...........$ $$288,000$$$936,000$

Prepare an income statement based on the absorption costing concept.

Prepare an income statement based on the variable costing concept.