On July 31, the end of the first month of operations, Rhys
Company prepared the following income statement, based on the
absorption costing concept: Sales (20,000 units) $1,200,000 Cost of
goods sold: Cost of goods manufactured $930,000 Less ending
inventory (4,000 units) 155,000 Cost of goods sold 775,000 Gross
profit $425,000 Selling and administrative expenses 112,000 Income
from operations $313,000
a. Prepare a variable costing income statement, assuming that
the fixed manufacturing costs were $72,000 and the variable selling
and...