Direct Materials $90,000

Direct Labor 120,000

Variable factory overhead 60,000

Fixed factory overhead 150,000

Fixed marketing/admin expense 180,000

The factory produced 80,000 units during the period, and 70,000 units were sold for $700,000

1. Prepare an income statement using variable costing.

2. Prepare an income statement using absorption costing.

(round unit costs to three decimal places)