Lucky Lager has just purchased the Austin Brewery. The brewery is two years old and uses absorption costing. It will sell its products to Lucky Lager at $45 per barrel. Paul Brandon, Lucky Lagers controller, obtains the following information about Austin Brewerys capacity and budgeted fixed manufacturing costs for 2012:

Denominator-Level Capacity Concept	Budgeted Fixed MOH per period	Days of Production per period	Hours of production per day	Barrels per hour
Theoretical capacity	$28,000,000	360	24	540
Practical capacity	$28,000,000	350	20	500
Normal capacity utilization	$28,000,000	350	20	400
Master-Budget capacity for each half year: January June 2012 July December 2012	$14,000,000 $14,000,000	175 175	20 20	320 480

In 2012, the Austin Brewery reported these production results:

Beginning inventory in barrels, 1 January 2012: 0

Production in barrels: 2,600,000

Ending inventory in barrels, 31 December 2012: 200,000

Actual variable manufacturing costs: $78,520,000

Actual fixed MOH costs: $27, 088,000

There are no variable cost variances. Fixed MOH cost variances are written off to COGS in the period in which they occur.

Prepare the Austin Brewerys absorption costing Income Statement under both the periodic and perpetual system when the denominator-level capacity is

1. Theoretical capacity
2. Practical capacity
3. Normal capacity utilization