32 Degrees, Inc APrepare 32 Degree's December 31 Income Statement for the Current

32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year.During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit.Cost information for this period is shown in the following table:
$\begin{array}{ll}\text { Production costs } & \\\text { Direct materials } & \$ 13.00 \text { per unit } \\\text { Direct labor } & \$ 6.00 \text { per unit } \\\text { Variable overhead } & \$ 2,100,000 \text { in total } \\\text { Fixed overhead } & \$ 3,220,000 \text { in total } \\\text { Nonproduction costs } & \\\text { Variable selling and administrative } & \$ 91,000 \text { in total } \\\text { Fixed selling and administrative } & \$ 458,000 \text { in total }\end{array}$ a.Prepare 32 Degree's December 31 income statement for the current year under absorption costing.
b.Prepare 32 Degree's December 31 income statement for the current year under variable costing.