uring the first month of operations which ended February, Smooth Skin Care Products manufactured 10,000 bottles, of which 8,000 were sold. Operating data for the month are as follows:

Production costs (10,000 bottles):
Direct materials	$140,000
Direct labor	40,000
Variable factory overhead	20,000
Fixed factory overhead	4,000	$204,000
Operating expenses:
Variable operating expenses	$ 34,000
Fixed operating expenses	2,000	36,000

Sales total $300,000 for the month.

During March, Smooth Skin manufactured 6,000 bottles and 8,000 were sold. Operating data for March are as follows:

Production costs (6,000 bottles):
Direct materials	$84,000
Direct labor	24,000
Variable factory overhead	12,000
Fixed factory overhead	4,000	$124,000
Operating expenses:
Variable operating expenses	$ 34,000
Fixed operating expenses	2,000	36,000

Sales total $300,000 for the month.

REQUIRED:

1. Using absorption costing, prepare income statements for February & March

2. Using variable costing, prepare income statement for February