On January 1 of the current year C. F. Hartley Co. commenced operations. It op

On January 1 of the current year C. F. Hartley Co. commenced operations. It operated its plant at 100% of capacity during January. The
following data summarized the results for January: Units
Production 50000
Sales ($18 per unit) 42000
Inventory January 31 8000
====== Total Cost or Expense
Manufacturing costs:
Variable $575000
Fixed 75000
Total $650000
========
Selling and administrative expenses:
Variable $ 33600
Fixed 10500
Total $ 45500
======== (a) Prepare an income statement in accordance with absorption costing.
(b) Prepare an income statement in accordance with variable costing.