7) Darnold Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	120
Units in beginning inventory		0
Units produced		8,900
Units sold		8,400
Units in ending inventory		500
Variable costs per unit:
Direct materials	$	38
Direct labor	$	36
Variable manufacturing overhead	$	6
Variable selling and administrative expense	$	9
Fixed costs:
Fixed manufacturing overhead	$	151,300
Fixed selling and administrative expense	$	109,200

Required:

a. Prepare a contribution format income statement for the month using variable costing.

b. Prepare an income statement for the month using absorption costing.