The company sells its product for $66 each. Unit variable costs are:

Direct material ($12)

Direct manufacturing labour ($18)

Variable manufacturing overhead ($9)

Marketing expenses per unit sold ($6)

Total annual fixed manufacturing cost ($180,000)

Fixed administrative expenses ($60,000)

Company produces 25,000 units, expects to sell 20,000 units

Prepare income statement using absorption costing and marginal costing methods