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

Units in beginning inventory ----

Required:

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

2. Prepare an income statement using variable costing.

Units produced Units sold ($47 per unit) Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative 10,000 9,100 $9 $6 $4 $5 $138,000