Johnson Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:

Sales (12,000 units)			$1,320,000
Production costs (15,000 units):
Direct materials	$610,500
Direct labor	292,500
Variable factory overhead	147,000
Fixed factory overhead	97,500		1,147,500
Selling and administrative expenses:
Variable selling and administrative expenses	$177,900
Fixed selling and administrative expenses	68,900		246,800

If required, round interim per-unit calculations to the nearest cent.

a. Prepare an income statement according to the absorption costing concept.

Johnson Motors Inc.
Absorption Costing Income Statement
For the Month Ended August 31
	$
	$
	$

b. Prepare an income statement according to the variable costing concept.

Johnson Motors Inc.
Variable Costing Income Statement
For the Month Ended August 31
		$
		$
		$
Fixed costs: