During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:     1 Sales   $8,800,000.00 2 Manufacturing costs:     3 Direct materials $3,360,000.00   4 Direct labor 1,344,000.00   5 Variable manufacturing cost 816,000.00   6 Fixed manufacturing cost 528,000.00 6,048,000.00 7 Selling and administrative expenses:     8 Variable $528,000.00   9 Fixed 352,000.00 880,000.00   Required: 1. Prepare an income statement based on the absorption costing concept.* 2. Prepare an income statement based on the variable costing concept.*

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:
 
 
1
Sales
 
$8,800,000.00
2
Manufacturing costs:
 
 
3
Direct materials
$3,360,000.00
 
4
Direct labor
1,344,000.00
 
5
Variable manufacturing cost
816,000.00
 
6
Fixed manufacturing cost
528,000.00
6,048,000.00
7
Selling and administrative expenses:
 
 
8
Variable
$528,000.00
 
9
Fixed
352,000.00
880,000.00
 
Required:
1. Prepare an income statement based on the absorption costing concept.*
2. Prepare an income statement based on the variable costing concept.*
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