The Casper Company is comparing its present absorption costing practices with direct costing methods. An examination of its records produced the following information: Maximum plant capacity 40,000 units Normal capacity 36,000 units Fixed factory overhead P 54,000 Fixed marketing and administrative expense P 20,000 Sales price per unit P 10 Standard variable manufacturing cost per unit P4 Variable marketing expense per unit sold P1 For the year, the following data are available: Budgeted production 36,000 units Actual production 30,000 units Sales 28,000 units Finished goods inventory, beginning P 1,000 Unfavorable variances from standard variable P 5,000 manufacturing costs All variances are written off directly at year-end as an adjustment in Cost of Goods Sold. Required: 1) Prepare the income statement under the direct costing method. 2) Prepare the income statement under the absorption costing method. The Casper Company is comparing its present absorption costing practices with direct costing methods. An examination of its records produced the following information: Maximum plant capacity 40,000 units Normal capacity 36,000 units Fixed factory overhead P 54,000 Fixed marketing and administrative expense P 20,000 Sales price per unit P 10 Standard variable manufacturing cost per unit P4 Variable marketing expense per unit sold P1 For the year, the following data are available: Budgeted production 36,000 units Actual production 30,000 units Sales 28,000 units Finished goods inventory, beginning P 1,000 Unfavorable variances from standard variable P 5,000 manufacturing costs All variances are written off directly at year-end as an adjustment in Cost of Goods Sold. Required: 1) Prepare the income statement under the direct costing method. 2) Prepare the income statement under the absorption costing method