On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the...

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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 (70,000 units) Variable cost of goods sold: $1,190,000 Variable cost of goods manufactured (80,000 units x $12 per unit) $960,000 Less ending inventory (10,000 units x $12 per unit) 120,000 Variable cost of goods sold 840,000 $350,000 Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Income from operations 13,000 $337,000 $16,000 23,000 39,000 $298,000 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 Sales For the Month Ended June 30 Cost of goods sold: Cost of goods manufactured Less ending inventory Cost of goods sold Gross profit Selling and administrative expenses Income from operations b. Reconcile the variable costing income from operations of $298,000 with the absorption costing income from operations determined in (a). Reconciliation of Variable and Absorption Costing Income Variable costing income from operations Absorption costing income from operations Difference 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 (70,000 units) Variable cost of goods sold: $1,190,000 Variable cost of goods manufactured (80,000 units x $12 per unit) $960,000 Less ending inventory (10,000 units x $12 per unit) 120,000 Variable cost of goods sold 840,000 $350,000 Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Income from operations 13,000 $337,000 $16,000 23,000 39,000 $298,000 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 Sales For the Month Ended June 30 Cost of goods sold: Cost of goods manufactured Less ending inventory Cost of goods sold Gross profit Selling and administrative expenses Income from operations b. Reconcile the variable costing income from operations of $298,000 with the absorption costing income from operations determined in (a). Reconciliation of Variable and Absorption Costing Income Variable costing income from operations Absorption costing income from operations Difference