Roller Paint Co. reported the following data for the month of September. There were no beginning inventories and all units were completed (no work in process).

	Total Cost	Number of Units	Unit Cost
Manufacturing costs:
Variable	$465,000	30,000	$15.50
Fixed	210,000	30,000	7.00
Total	$675,000		$22.50

Selling and administrative expenses:
Variable	$2.00 per unit sold
Fixed	$39,000

In the month of September, 28,000 of the 30,000 units manufactured were sold at a price of $80.00 per unit.

	Required:
(a)	Prepare a variable costing income statement.*
(b)	Prepare an absorption costing income statement.*
(c)	Briefly explain why there is a difference in income from operations between the two methods.
	*Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. You will not need to enter colons (:) on the income statement.

(a) Prepare a variable costing income statement. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. You will not need to enter colons (:) on the income statement.

Roller Paint Co.

Variable Costing Income Statement

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2	Variable cost of goods sold:
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(b) Prepare an absorption costing income statement. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. You will not need to enter colons (:) on the income statement.

Roller Paint Co.

Absorption Costing Income Statement

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2	Cost of goods sold:
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(c) Briefly explain why there is a difference in income from operations between the two methods.

The difference in the amount of income from operations is a result of the treatment of .