Joshua Company has determined the following selling price and manufacturing cost per unit based on normal production of 72,000 units per year:
Selling price per unit....................................... $ 22
Variable cost per unit:
Direct materials............................................. $ 4
Direct labor................................................. 4
Variable factory overhead.................................. 2
Variable cost per unit ...................................... $ 10
Fixed costs:
Fixed factory overhead per year ........................... $ 360,000
Fixed selling and administrative expense per year...... 48,000

October 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 2016 under each of the following:
1. Absorption costing (include under- or overapplied overhead).
2. Variable costing.

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Month Units Produced 6,000 1,000 8,000 Units Sold 3,000 4,000 6,000 November December