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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	125
Units in beginning inventory		395
Units produced		6,210
Units sold		6,420
Units in ending inventory		185
Variable costs per unit:
Direct materials	$	47
Direct labor	$	24
Variable manufacturing overhead	$	3
Variable selling and administrative expense	$	18
Fixed costs:
Fixed manufacturing overhead	$	105,570
Fixed selling and administrative expense	$	89,880

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

a. Prepare a contribution format income statement for the month using variable costing.

b. Prepare an income statement for the month using absorption costing.

Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement $ 802,500 Sales Variable expenses: $ 301,740 154,080 19,260 115,560 590,640 211,860 Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 105,570 89,880 195,450 16,410 Accounts payable Accounts receivable red A Required B > Cash Fixed manufacturing overhead

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