The following data were prepared by  the Waco Wagon Company.

Required

a. Under absorption costing, what is the unit product cost?

b. Under variable costing, what is the unit product cost?

c. Under absorption costing, what is the cost of goods sold?

d. Under variable costing, what is the cost of goods sold?

e. Under absorption costing, what is the operating income?

f. Under variable costing, what is the operating income?

g. Reconcile the difference in operating income under absorption costing versus variable costing.

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Total Variable Fixed Sales price Direct materials used $25/unit $ 80,000 $ 85,000 Direct labor Manufacturing overhead Selling and administrative expense $15,000 $13,650 $115,000 $100,000 $ 22,650 $ 9,000 Units manufactured 25,000 units Beginning Finished Goods Inventory Ending Finished Goods Inventory 20,000 units 6,000 units