Roofing tile is the major product of the Tops Corporation. The company had a particularly good year, as shown by its operating data. It sold 88,400 cases of tile. Variable cost of goods sold was $848,640; variable selling expenses were $132,600; fixed overhead was $166,680; fixed selling expenses were $152,048; and fixed administrative expenses were $96,450. Selling price was $18 per case. There were no partially completed jobs in process at the beginning or the end of the year. Finished goods inventory had been used up at the end of the previous year.

Required

1. Prepare the calendar year-end income statement for the Tops Corporation using the traditional reporting format.

2. Prepare the calendar year-end income statement for the Tops Corporation using the variable costing format.