During the most recent year, Morgan Company had the following data associated with the items it makes:

Required:
1. Calculate the cost of goods sold under absorption costing.
2. Calculate the cost of goods sold under variable costing.
3. Prepare an income statement using absorption costing.
4. Prepare an income statement using variable costing.

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Units in beginning inventory Units produced Units sold ($140 per unit) Variable costs per unit 18,000 16,000 Direct materials Direct labor Variable overhead $23 $46 $15 Fixed costs: Fixed overhead per unit produced Fixed selling and odministrative $30 $165,000