During the most recent year, the 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 labour	$6
Variable Overhead	$4
Fixed costs:
Fixed overhead costs per unit produced	$5
Fixed and administrative sales	$138,000

Required:

1. Calculate the cost of goods sold based on variable cost.

2. Prepare an income statement using variable costs. Enter amounts as positive numbers.