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

	Selling price...............................................	$120
	Units in beginning inventory.....................	0
	Units produced..........................................	7,600
	Units sold..................................................	7,400
	Units in ending inventory..........................	200
	Variable costs per unit:
	Direct materials......................................	$15
	Direct labor.............................................	$48
	Variable manufacturing overhead..........	$7
	Variable selling and administrative........	$10
	Fixed costs:
	Fixed manufacturing overhead..............	$228,000
	Fixed selling and administrative............	$66,600

Required:

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

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