Refer to the data for Beyta Company above.

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

Units in beginning inventory.......................-

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

Units sold ($60 per unit) ........................8,800

Variable costs per unit:

Direct materials.....................................$12

Direct labor...........................................$7

Variable overhead....................................$5

Fixed costs:

Fixed overhead per unit produced.................$8

Fixed selling and administrative...........$138,000

Required:

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

2. Prepare an income statement using variable costing.