Walton Manufacturing Company makes a product that sells for $75.80 per unit. Manufacturing costs for the product amount to $26.00 per unit variable, and $74,160 fixed. During the current accounting period, Walton made 3,600 units of the product and sold 3,200 units. Selling and administrative expenses were zero.

Required

1. Prepare an absorption costing income statement.

2. Prepare a variable costing income statement.