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

Selling price$108

Units in beginning inventory0

Units produced1,100

Units sold900

Units in ending inventory200

Variable costs per unit:

Direct materials$28

Direct labour30

Variable manufacturing overhead7

Variable selling and administrative11

Fixed costs:

Fixed manufacturing overhead$14,300

Fixed selling and administrative1,800

Required:

a) Create an income statement for the month using the contribution format and the variable costing method.

b) Create an income statement for the month using the absorption costing method.