Joshua Company has determined the following selling price and manufacturing cost per unit based on normal production of 72,000 units per year:

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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Selling price per unit.. 22 Variable cost per unit: Direct materials... Direct labor.... Variable factory overhead.. Variable cost per unit 10 Fixed costs: Fixed factory overhead per year.... $ 360,000 Fixed selling and administrative expense per year. 48,000 Month Units Produced Units Sold October . 6,000 3,000 November 1,000 4,000 December.. 8,000 6,000 %24 %24 Selling price per unit.. 22 Variable cost per unit: Direct materials... Direct labor.... Variable factory overhead.. Variable cost per unit 10 Fixed costs: Fixed factory overhead per year.... $ 360,000 Fixed selling and administrative expense per year. 48,000 Month Units Produced Units Sold October . 6,000 3,000 November 1,000 4,000 December.. 8,000 6,000 %24 %24