Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones.

Beginning Inventory 0
Units Produced 24,000
Units Sold 19,200
Selling Price per Unit $146
Variable Sales and Administration Expenses $4
Fixed Sales and Administration Expenses $936,000
Direct Material Cost per Unit $25
Direct Labor Cost per Unit $10
Variable Manufacturing Overhead Cost per Unit $2
Fixed Manufacturing Overhead Cost per Month $940,800

Question Content Area
Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.

Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank.

Prepare a reconciliation between the two statements.