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

Sales (90,000 units) $4,500,000

Production Costs (108,000 units):

Direct Material 1,620,000

Direct Labor 1,296,000

Manufacturing Overhead: Variable 810,000

Fixed 216,000

Selling and Administrative Expenses: Variable 225,000

Fixed 396,000

A. Prepare an income statement under absorption costing.

B. Prepare an income statement under variable costing.