Landcaster Company began operation on July 1, and operated at 100 percent of capacity during the first month.

The following data summarize the results for July:

Sales (12,000 units) $600,000

Total CostNumber of unitsUnit cost

Manufacturing Cost:

Variable375,00015,00025.00

Fixed150,00015,00010.00

Total525,00065,00035.00

Selling and administrative expenses:

Variable ($5 per unit sold)75,000

Fixed 50,000

Total125,000

1.Prepare an absorption costing income statement

2.Prepare the variable costing income statement