During the most recent year, Osterman Company had the following data:

Units in beginning inventory Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000

`1.Calculate the cost of goods sold under variable costing.

2. Prepare an income statement using variable costing.