Glavine Motors assembles cars and sells them for $24,000 each. Data for April and May are:

April

May

Units:

Beginning inventory

0

150

Production

500

400

Sales

?

520

Variable Costs:

Mfg. cost per unit produced

$10,000

$10,000

Marketing cost per unit sold

$3,000

$3,000

Fixed Costs:

Mfg. costs

$2,000,000

$2,000,000

Marketing costs

$600,000

$600,000

1) Calculate net income for

April

using Variable Costing: $ _______________

2) Calculate net income for

April

using Absorption Costing: $ _______________

work must be shown