The Duller Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2016, and operated at 100% of capacity during the first month. The following data summarize the results for May:

Sales (13,000 units)				$2,080,000
Production costs (17,000 units):
Direct materials		$1,006,400
Direct labor		482,800
Variable factory overhead		241,400
Fixed factory overhead		161,500		1,892,100
Selling and administrative expenses:
Variable selling and administrative expenses		$293,300
Fixed selling and administrative expenses		113,500		406,800

If required, round interim per-unit calculations to the nearest cent.

a. Prepare an income statement according to the absorption costing concept.

The Duller Edge Inc.
Absorption Costing Income Statement
For the Month Ended May 31, 2016
Sales	$
Cost of goods sold
	$
	$

b. Prepare an income statement according to the variable costing concept.

The Duller Edge Inc.
Variable Costing Income Statement
For the Month Ended May 31, 2016
		$
		$
		$
Fixed costs:
	$
		$