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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 1 1 3

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 113
Units in beginning inventory 320
Units produced 5,920
Units sold 6,050
Units in ending inventory 190
Variable costs per unit:
Direct materials $ 42
Direct labor $ 22
Variable manufacturing overhead $ 3
Variable selling and administrative expense $ 15
Fixed costs:
Fixed manufacturing overhead $ 106,560
Fixed selling and administrative expense $ 72,600
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.Required A
Prepare a contribution format income statement for the month using variable costing
\table[[Variable Costing Income Statement,],[Sales,,],[Variable expenses:,,],[Variable cost of goods sold,,],[Variable selling and administrative expenses,,],[,,],[,,683,650],[,,],[Fixed expenses:,,],[Fixed manufacturing overhead,,],[Variable selling and administrative expenses,,683,650],[,,],[,,],[Net operating income,,]]
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