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

Units in beginning inventory

Units produced ..........................10,000

Units sold ($47 per unit) .................9,300

Variable costs per unit:

Direct materials ..............................$9

Direct labor ...................................$6

Variable overhead ...........................$4

Fixed costs:

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

Fixed selling and administrative,..$138,000

Required:

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

2. Prepare an income statement using absorption costing.