During the first month of operation which ended October, MaryKay Products manufactured 25,000 bottles, of which 20,000 were sold. Operating data for the month are as follows:

Production costs (25,000 bottles):

Direct Labor 60,000

Direct Materials $210,000

Variable factory overhead 30,000

Fixed factory overhead 6000 $306,000

Operating expense

Variable operating expense $51,000

Fixed Operating Expense 3,000 54,000

Sales total $450,000 for the month

During November, Marykay manufactured 15,000 bottles and 20,000 were sold. Operating data for november are as follows:

Production cost for 15,000 bottles

Direct labor 36000

Direct materials $126,000

Variable factory overhead 18,000

Fixed factory overhead 6000 $186,000

Operating expenses:

Variable operating expenses $51,000

Fixed operating expenses 3000 54000

Sales total $450,000 for a month

Required:

a) Using absorption costing, prepare income statement for October and November

b) Using variable costing, prepare income statement for October and November