During the most recent year, Engers Company had the following data:

Units in beginning inventory ............—

Units produced ................8,000

Units sold ($70 per unit) ...........7,500

Variable costs per unit:

Direct materials ...............$20

Direct labor ..................$14

Variable overhead ...............$3

Fixed costs:

Fixed overhead per unit produced ........$5

Fixed selling and administrative ......$142,000

Required:

1. Calculate the cost of goods sold under variable costing.

2. Prepare an income statement using variable costing.