Absorption and variable costing income statements

problems in Financial & Managerial Accounting Using Excel for Success by Dr. James M Reeve, Dr. Carl S Warren,  Jonathan E Duchac. Chapter 20

Problem 20-1A:

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

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