Summarized data for Walrus Co. for its first year of operations are:

Sales (100,000 units)	$5,000,000
Production Costs (120,000 units):
Direct Material	1,800,000
Direct Labor	1,500,000
Manufacturing Overhead:
Variable	900,000
Fixed	300,000
Selling and Administrative Expenses:
Variable	260,000
Fixed	440,000

A. Prepare an income statement under absorption costing.

Walrus Co.
Absorption Costing Income Statement
		$
Cost of Goods Sold:
	$
	$
		$
		$

B. Prepare an income statement under variable costing.

Walrus Co.
Variable Costing Income Statement
		$
Variable Cost of Goods Sold:
	$
	$
		$
Fixed Expenses:
	$
		$