CH 21 - Assignment Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at $500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable Fixed 20,000 20,000 $275.00 26.00 $301.00 $5,500,000 520,000 $6,020,000 Total Manufacturing costs in February: Variable 130,000 130,000 Fixed $275.00 30.00 $305.00 $35,750,000 3,900,000 $39,650,000 Total Selling and administrative expenses in February: Variable 150,000 150,000 $20.00 1.30 $3,000,000 195,000 Fixed Total $21.30 $3,195,000 a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28