During the most recent year, Engers Company had the following data:

Units in beginning inventory .........—

Units produced ..............8,000

Units sold ($70 per unit) ............7,500

Variable costs per unit:

Direct materials ................$20

Direct labor ................$14

Variable overhead ..............$3

Fixed costs:

Fixed overhead per unit produced .......$5

Fixed selling and administrative .....$142,000

Required:

1. Calculate the cost of goods sold under absorption costing.

2. Prepare an income statement using absorption costing.