Greenville Corp. has determined the following selling price and manufacturing cost per unit based on normal production of 48,000 units per year:
Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28
Variable cost per unit: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . .. . $ 6
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16
Fixed cost per unit:
Fixed factory overhead per year . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240,000
Fixed selling and administrative expense per year . . . . . . . . . . . 60,000

January has no beginning inventories.

Required:
Prepare comparative income statements, including a comparative schedule of cost of goods sold, for each of these three months in 2013 under each of the following:
1. Absorption costing (include under- or overapplied overhead).
2. Variablecosting.

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Month January.... Februar Units Produced 4,000 3,000 5,000 Units Sold 3,000 4,000 4,000