Prepare income statements under absorption (full) and variable (direct) costing using the following data:

Standard Per Unit

Direct materials 25

Direct labor 15

Factory overhead

Variable 9

Fixed 5 (based on normal capacity/expected volume of 10,000 units)

Selling price per unit is $250 per unit

Beginning inventory is 1000 units

Produced 12,000 units

Sold 9000 units

General and Administrative fixed cost is $200,000

Variable standard for selling expense is $5.00 per unit

In addition, show your reconciliations of the net incomes.