Period 1Period 2Period 3

Production(units)30,0003800027000

Sales 30,0002700038000

Opening stock11,000

Closing stock------11,000-------

Per unit cost are as follows:

Direct material$ 1.5

Direct labor1.0

Production overhead3.0

Selling price per unit $ 9

Administrative overheads are fixed at $25000 and one third of the production overheads are fixed.

Required

Prepare separate income statements on full costing and variable costing