Nurmberof Uait Ce Total Units Cout Manuheturing ensts in Fehnary 1 heginning immntnry Varable. S500 Fied. 20,000 25.00 S301.00 sa0,000 3 40,000 Total Manuferunng cots iniebruary. Variable.. 130.000 S275.00 *............... Fixed. Tut 130,000 30.00 3.000,000 s305.00 Selng and odrinstatve operses in Februa Varabie Fed. S 2000 130 2130 .... IS000 195,000 S 3.105000 Total
Fresno Industries Inc. manufactures and sells high-quality camping tents.The company began operations on January 1and operated at
100% of capacity (150,000 units) during the first month,creating an ending inventory of 20,000 units.During February, the company produced
130,000 units during the month but sold
150,000 units at $500 per unit.The February
a.Prepare an income statement according to the absorption costing concept for the month ending February
b.Prepare an income statement according to the variable costing concept for for the month ending February c.vVhat is the reason for the difference in the amount of operating income reported in (a) and (b)?
![Nurmberof
Uait
Ce
Total
Units
Cout
Manuheturing ensts in Fehnary 1 heginning immntnry
Varable.
S500
Fied.
20,000
25.00
S301.00
sa0,000
3 40,000
Total
Manuferunng cots iniebruary.
Variable..
130.000
S275.00
*...............
Fixed.
Tut
130,000
30.00
3.000,000
s305.00
Selng and odrinstatve operses in Februa
Varabie
Fed.
S 2000
130
2130
....
IS000
195,000
S 3.105000
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c35b880-bfc7-4fe0-82e7-4bc30382aba9%2F636d9c2e-015c-4dd4-bc2d-ddfa1deb2515%2F7mkc9_processed.png&w=3840&q=75)
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