Sierra company manufacturers and sells a single product. 

The following costs wear incurred during the company's first year of operation. variable cost per unit: 

manufacturing direct material 60 

direct labor 9 

variable manufacturing overhead 3 

costs per year fixed manufacturing overhead 3 lakh 

fixed selling and administrative overhead 109000 

required 

1. prepare an income statement for the year using absorption costing 

2. prepare an income statement for the year using variable costing