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Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 28,500 hats, of which 27,100 were sold. Operating data for the month are summarized as follows: During August, Head Gear Inc. manufactured 25,700 hats and sold 27,100 hats. Operating data for August are summarized as follows: 1a. Prepare income statement for July using the absorption costing concept. Feedback T Check My Work Head Gear Inc. 1a. Sales - Absorption Costing.Incamhingtatement = Gross profit, gross profit - selling and administrative expenses = operating income For the Month Ended July 31 -(Manufactured Units - Sold units) x (total manufacturing costsimanufactured units) 1b. Prepare income statement for August using the absorption costing concept. Head tsar Inc. Absorption Costing Income Statement For the Month Ended Auaust 31 F Check My Work 16. Sales - (cost of goods manufactured - ending inventory* )= Gross profit; gross profit - selling and administrative expenses = operating income "(Manufactured Units - Sold units) (total manufacturing costs/manufactured units) 2a. Prepare income statement for July using the variable costing concept. 2b. Prepare income statement for August using the variable costinn mmman Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses v Total fixed costs V Operating income Feedback Check My Work Partially correct