Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:

Required:
a.	Prepare an income statement according to the absorption costing concept.*
b.	Prepare an income statement according to the variable costing concept.*

1 Sales (2,000 units) $600,000.00 2 Production costs (2.400 units): Direct materials $300,000.00 Direct labor 115,200.00 Variable factory overhead 43,200.00 Fixed factory overhead 21,600.00 480,000.00 Selling and administrative expenses: Variable selling and administrative expenses $50,000.00 Fixed selling and administrative expenses 22,000.00 72,000.00