Absorption Costing Income Statement

On June $30,$ the end of the first month of operations, Tudor Manufacturing Co$.$ prepared the following income statement, based on the variable costing concept:

Sales $(80,000$ units$)$ $$1,120,000$

Variable cost of goods sold:

Variable cost of goods manufactured $(100,000$ units x $$10$ per unit$)$ $$1,000,000$

Less ending inventory $(20,000$ units x $$10$ per unit$)200,000$

Variable cost of goods sold $800,000$

Manufacturing margin $$320,000$

Variable selling and administrative expenses $11,000$

Contribution margin $$309,000$

Fixed costs:

Fixed manufacturing costs $$50,000$

Fixed selling and administrative expenses $19,00069,000$

Income from operations $$240,000$

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a$.$ Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

Tudor Manufacturing Co$.$

Income Statement$-$Absorption Costing

For the Month Ended June $30$

$Sales

Cost of goods sold:

$Cost of goods manufactured

Less ending inventory

Cost of goods sold

$Gross profit

Selling and administrative expenses

Income from operations $fill in the blank $0$c$76$d$301$e$03303$f$\_13$

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a$.$ Review the absorption costing income statement.

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b$.$ Reconcile the variable costing income from operations of $$240,000$ with the absorption costing income from operations determined in $($a$).$

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Reconciliation of Variable and Absorption Costing Income

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Variable costing income from operations $fill in the blank $68$e$4$acfebf$97$f$9$e$\_1$

Absorption costing income from operations fill in the blank $68$e$4$acfebf$97$f$9$e$\_2$

Difference $fill in the blank $68$e$4$acfebf$97$f$9$e$\_3$