The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. 1. Prepare income statements for EntertainMe in January, February, and March 2017 under (a) variable costing and (b) absorption costing. January February March Beginning inventory 0 150 150 Production 1,500 1,400 1,520 Goods available for sale 1,500 1,550 1,670 Units sold 1,350 1,400 1,530 Ending inventory 150 150 140