VERONA MANUFACTURING COMPANY

Verona Company has started to produce a cutting equipment on January $1,2021.$ During January and February, the company produced $12,000$ units in each month. At this production level, the unit costs were as follows; Direct Material $$250,$ Direct Labor $$312\mathrm{.}50,$ Variable MOH $$62\mathrm{.}50,$ Fixed MOH $$125.$ Variable marketing expenses for January was $$87,500,$ fixed marketing expenses per month was $$375,000.$ Variable general administrative expenses for January was $$50,000,$ fixed general administrative expenses per month was $$625,000.$ There was no WIP inventory for both months. During January, $10,000$ units and during February $13,000$ units were sold. Unit selling price was $$1,100.$

Question$)$ Prepare the Income Statements for both months under Absorption and Variable Costing