Saved under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold; this left 125 bikes in ending Inventory. The income statement Information under variable costing follows. Sales (225 x $1,800) Variable product cost (225 5650) Variable selling and administrative expenses (225550) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net incone $ 405,000 146,25e 11,25e 247, see 66,50e 85, eee $ 96,000 1. Prepare this company's Income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement $ 405.000 Sales Less: Cost of goods sold Variable product costs Foxed overhead costs $ 146.250 42,750 189.000 216,000 Cost of goods sold Gross margin Selling general and administrative expenses Fired selling and administrative costs Variable selling and administrative expenses 5 85.000 11,250 Total selling general and administrative expenses Net income oss) 96.250 119.750 s Nel income under absorption costing is higher than net income under variable costing by Foxed costs added to inventory Bequired Required 2 >