During 2015, M Co. sold 60000 units at $30 per unit. The beginning period showed 10000 units in
inventory and produced 50000 units during the year. The following production costs and selling
and administrative expenses were:				SEE PAGE 327 AND 328.
						Number of
				Total costs		Units		Unit cost
Beginning inventory:
	Direct materials			$ 67,000		10,000		$ 6.70
	Direct labor			155,000		10,000		15.50
	Variable factory overhead			18,000		10,000		1.80
	Fixed factory overhead			20,000		10,000		2.00
Current period costs:
	Direct materials			$350,000		50,000		$ 7.00
	Direct labor			810,000		50,000		16.20
	Variable factory overhead			90,000		50,000		1.80
	Fixed factory overhead			100,000		50,000		2.00
Selling and administrative expenses:
	Variable			$ 65,000
	Fixed			45,000

Prepare both an absorption and variable costing income statement.						SEE
PAGE 329.
Determine and give reason for difference in income from operations in part (1).
SEE PAGE 329.