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Saved Help Save & Exit Check Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 54,000 169,000 $ 223, eee The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow. July August Units Produced 18,eee 18,eee Units Sold 14, see 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Check Units Sold 14, eee 22, eee Produced 18,eee 18, eee July August The company's Accounting Department has prepared the following absorption costing Income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $ 672,000 294, 000 378,000 211.000 $ 167,000 August 5 1,056, eee 462,000 594,000 235.000 $ 359,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below

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