PLEASE USE CHARTS PROVIDED FOR 1 & 2

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows:

1	Sales		$10,800,000.00
2	Manufacturing costs:
3	Direct materials	$6,400,000.00
4	Direct labor	1,600,000.00
5	Variable manufacturing cost	1,280,000.00
6	Fixed manufacturing cost	320,000.00	9,600,000.00
7	Selling and administrative expenses:
8	Variable	$1,080,000.00
9	Fixed	180,000.00	1,260,000.00

1. Prepare an income statement based on the absorption costing concept. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.

Kodiak Fridgeration Company

Absorption Costing Income Statement

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2. Prepare an income statement based on the variable costing concept. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.

Kodiak Fridgeration Company

Variable Costing Income Statement

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