Token Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $$120$

Units in beginning inventory $0$

Units produced $1,200$

Units sold $1,000$

Units in ending inventory $200$

Variable costs per unit:

Direct materials $$30$

Direct labour $$32$

Variable manufacturing overhead $$7$

Variable selling and administrative $$10$

Fixed costs:

Fixed manufacturing overhead $$14,300$

Fixed selling and administrative $$2,000$

Required:

a$)$ Prepare an income statement for the month using the contribution format and the variable costing method.

b$)$ Prepare an income statement for the month using the absorption costing method.