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Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 375 bikes were produced and 225 were sold; this left 150 bikes in ending inventory. The income statement information under variable costing follows.
Sales (225 × $1,675)
$376875
Variable production cost (225 × $600)
$135000
Variable selling and administrative expenses (225 × $50)
$11250
Contribution margin
$230625
Fixed overhead cost
$60000
Fixed selling and administrative expense
$80000
Net income
$90625
Prepare this company's income statement for its first month of operations under absorption costing.(Round your intermediate calculations to the nearest whole dollar.)
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