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

Selling price$ 115Units in beginning inventory310Units produced6,280Units sold6,160Units in ending inventory430Variable costs per unit: Direct materials$ 39Direct labor$ 26Variable manufacturing overhead$ 3Variable selling and administrative expense$ 20Fixed costs: Fixed manufacturing overhead$ 119,320Fixed selling and administrative expense$ 43,120

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 a contribution format income statement for the month using variab Prepare an income statement for the month using absorption costing