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

Selling price	$	130
Units in beginning inventory		395
Units produced		6,720
Units sold		6,870
Units in ending inventory		245
Variable costs per unit:
Direct materials	$	48
Direct labor	$	21
Variable manufacturing overhead	$	3
Variable selling and administrative expense	$	19
Fixed costs:
Fixed manufacturing overhead	$	147,840
Fixed selling and administrative expense	$	103,050

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.