I don't understand what I'm doing wrong on the two boxes highlighted in red?

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 60,000 mini refrigerators, of which 54,000 were sold. Operating data for the month are summarized as follows:

1

Sales

$10,260,000.00

2

Manufacturing costs:

3

Direct materials

$5,100,000.00

4

Direct labor

1,800,000.00

5

Variable manufacturing cost

1,200,000.00

6

Fixed manufacturing cost

840,000.00

8,940,000.00

7

Selling and administrative expenses:

8

Variable

$972,000.00

9

Fixed

324,000.00

1,296,000.00

Required:

1.

Prepare an income statement based on the absorption costing concept.*

2.

Prepare an income statement based on the variable costing concept.*

3.

Explain the reason for the difference in the amount of income from operations reported in (1) and (2).

* Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign.

1. Prepare an income statement based on the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign. Score: 68/68 Kodiak Fridgeration Company Absorption Costing Income Statement For the Month Ended August 31 1 Sales $10,260,000.00 2Cost of goods sold Cost of goods manufactured $8,940,000.00 4 Inventory, August 31 (894,000.00) Total cost of goods sold Gross profit Selling and administrative expenses Income from operations 8,046,000.00 $2,214,000.00 1,296,000.00 $918,000.00 8 2. Prepare an income statement based on the variable costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if required. Enter Inventory, August 31 as a negative umber using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign. Score: 93/102 Kodiak Fridgeration Company Variable Costing Income Statement (Label) 1 Sales 2 Vaiable cost of goods sold 3Variable cost of goods manufactured 4 Inventory, August 31 $10,260,000.00 $8,100,000.00 810,000.00 7,290,000.00 $2,970,000.00 972,000.00 $1,998,000.00 Total variable cost of goods sold 6 Manufacturing margin 7 Variable selling and administrative expenses 8 Contribution margin 9 Fixed costs: 10 Fixed manufacturing costs 11 Fixed selling and administrative expenses 12 Total fixed costs 13 Income from operations $840,000.00 324.000.00 1,164,000.00 $834,000.00