Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price$120Units in beginning inventory 330Units produced 6,010Units sold 6,090Units in ending inventory 250Variable costs per unit: Direct materials$42Direct labor$24Variable manufacturing overhead$2Variable selling and administrative expense$17Fixed costs: Fixed manufacturing overhead$108,180Fixed selling and administrative expense$97,440

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

a. Prepare a contribution format income statement for the month using variable costing.

b. Prepare an income statement for the month using absorption costing.

Prepare an income statement for the month using absorption costing.

Absorptions Costing Income Statement