Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold; this left 125 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 * $1,750) Variable product cost (225 * $700) Variable selling and administrative expenses (225 $50) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 393,750 157,500 11,250 225,000 66,500 90,000 $ 68,500 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Sales Less: Cost of goods sold Variable product costs Fored overhead costs Cost of goods sol Gross margin Selling general and administrative expenses Variable seling and administrative expenses Foed selling and administrative costs 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Sales Less: Cost of goods sold Variable product costs Fixed overhead costs es Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed seling and administrative costs Net income (loss) Fixed costs added to inventory Required 2 > Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold; this left 125 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 $1,750) Variable product cost (225 x $700) Variable selling and administrative expenses (225 550) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net Income $ 393,750 157,500 11,250 225,000 66,500 90,000 $ 68,500 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit