On June $30,2016,$ the end of the first month of operations, Tudor Manufacturing Co$.$ prepared the following income statement, based on the variable costing concept:

Tudor Manufacturing Co$.$

Income Statement $-$ Variable Costing

For the Month Ended June $30,2016$

$1$

Sales $(420,000$ units$)$

$$7,450,000\mathrm{.}00$

$2$

Variable cost of goods sold:

$3$

Variable cost of goods manufactured $(500,000$ units $\backslash$times $$14$ per unit$)$

$$7,000,000\mathrm{.}00$

$4$

Less ending inventory $(80,000$ units $\backslash$times $$14$ per unit$)$

$1,120,000\mathrm{.}00$

$5$

Variable cost of goods sold

$5,880,000\mathrm{.}00$

$6$

Manufacturing margin

$$1,570,000\mathrm{.}00$

$7$

Variable selling and administrative expenses

$80,000\mathrm{.}00$

$8$

Contribution margin

$$1,490,000\mathrm{.}00$

$9$

Fixed costs:

$10$

Fixed manufacturing costs

$$160,000\mathrm{.}00$

$11$

Fixed selling and administrative expenses

$75,000\mathrm{.}00$

$235,000\mathrm{.}00$

$12$

Income from operations

$$1,255,000\mathrm{.}00$

Required:

A$.$ Prepare an absorption costing income statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. $$Less$$ or $$Plus$$ and colons will automatically appear if it is required. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

B$.$ Reconcile the variable costing income from operations of $$1,255,000$ with the absorption costing income from operations determined in $($A$).$ Enter all amounts as positive numbers.