The Mavis Company uses an absorption-costing system based on standard costs. Total variable manufacturing costs, including direct material cost, are $3 per unit. Total budgeted and actual fixed manufacturing overhead costs are $420,000. Fixed manufacturing overhead is allocated at $0.7 per unit ($420,000/600,000 units). Selling price is $5 per unit. Variable operating (non-manufacturing) cost $1 per unit sold. Fixed operating (non-manufacturing) costs are $120,000. Beginning inventory in 2012 is 30,000 units; ending inventory is 40,000 units. Sales in 2012 are 540,000 units. The same standard unit costs persisted throughout 2011 and 2012. Assume there are no price, spending or efficiency variances.

Required

Prepare an income statement for 2012 under both the periodic and perpetual formats assuming that the PVV is written off at year-end as an adjustment to COGS.