Sivan Co. manufactures and sells one product.

For the year, they started with no opening inventory; produced 100,000 units but only sold 70,000 units.

The selling price per each unit is $60.

Variable costs per unit:
Direct materials	$7
Direct Labor	$6
Variable manufacturing overhead	$5
Variable selling and administrative	$6

Fixed costs per year:
Fixed manufacturing Overhead	$700,000
Fixed Selling and Administrative expenses	$300,000

Required:

a) Prepare the Income Statement using Absorption Costing.

b) Prepare the Income Statement using Variable Costing.