During its second month of operations, Texas Corporation produced 300 units and sold 280 units at $40 each. The beginning inventory comprised 50 units, and costs were unchanged from the previous month. Texas uses a LIFO cost flow assumption to account for inventory. Costs incurred during the second month were:

Direct materials per unit produced $3

Direct labor per unit produced $5

Variable overhead per unit produced $7

Variable selling and administrative cost per unit sold $5

Total fixed production overhead $6,000

Total fixed selling and administrative costs $3,000

1. Prepare an income statement using the variable costing method.