The following cost and revenue data relate to a company's first month of operations.

Beginning inventory		0
Units produced		45,000
Units sold		40,000
Selling price per unit	$	77
Selling and administrative expenses:
Variable per unit	$	3
Fixed (per month)	$	557,000
Manufacturing costs:
Direct materials cost per unit	$	18
Direct labor cost per unit	$	7
Variable manufacturing overhead cost per unit	$	1
Fixed manufacturing overhead cost (per month)	$	765,000

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for the first month.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for the first month.