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During the first month of operations ended May 31, 2012, Dorm Fridge Company manufactured 12,500 microwaves, of which 11,700 were sold. Operating...

During the first month of operations ended May 31, 2012, Dorm Fridge Company manufactured 12,500 microwaves, of which 11,700 were sold. Operating data for the month are summarized as follows

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During the first month of operations ended May 31, 2012, Dorm Fridge Company manufactured 12,500 microwaves, of which 11,700 were sold. Operating data for the month are summarized as follows: Sales $2,106,000 Manufacturing costs: Direct materials $1,050,000 Direct labor 312,500 Variable manufacturing cost 268,750 Fixed manufacturing cost 137,500 1,768,750 Selling and administrative expenses: Variable $ 169,650 Fixed 76,050 245,700 Instructions 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
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During the first month of operations ended May 31, 2012, Dorm Fridge Company
manufactured 12,500 microwaves, of which 11,700 were sold. Operating data for the
month are summarized as follows:...

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