Weber Light Aircraft, a company that produces light recreational aircraft. Data concerning the companys operations appear below:

Per Aircraft Per Month

Selling price $100,000 Direct materials $19,000 Direct labor $5,000

Variable manufacturing overhead $1,000 Fixed manufacturing overhead $70,000 Variable selling and administrative expenses $10,000 Fixed selling and administrative expenses $20,000 January February March Beginning inventory 0 0 1 Production 1 2 2 Sales 1 1 3 Ending inventory 0 1 0 Required: i) Assume the company uses absorption costing. Prepare an income statement for each month. ii) Assume the company uses variable costing. Prepare an income statement for each month. iii) Reconcile the variable costing and absorption costing net operating income.