Refer to the data for Osterman Company above.

Data for Osterman

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

Units in beginning inventory.................................... -

Units produced............................................... 10,000

Units sold ($47 per unit)...................................... 9,300

Variable costs per unit:

Direct materials.................................................. $9

Direct labor...................................................... $6

Variable overhead............................................... $4

Fixed costs:

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

Fixed selling and administrative....................... $138,000

Required:

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

2. Prepare an income statement using variable costing.