Reference no: EM132840802

Question - A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units produced 7,200

Units sold 7,000

Beginning inventory 0

Selling price per unit $50

Direct materials per unit $6

Direct labor per unit $5

Variable manufacturing overhead per unit $14

Variable selling and administrative expense per unit $6

Total fixed manufacturing overhead $57,600

Total fixed selling and administrative expense $62,000

Required -

1. Calculate unit product cost under variable costing and absorption costing.

2. Prepare variable costing income statement for the month.

3. Prepare absorption costing income statement for the month.