2. Shark Bicycle of Bombay, produces an inexpensive, yet rugged, bicycle for use on the city's crowded streets that it sells for 500 Birr each. Selected data for the company's operations last year follow: Units in beginning inventory Units produced. Units sold.. Units in ending inventory. Variable costs per Direct materials Direct labor.. .0 10,000 8,000 2,000 Br. 120 Br. 140 Variable manufacturing overhead. Variable selling and administrative. Fixed costs: Fixed manufacturing overhead Fixed selling and administrative. Required: Br. 50 Br. 20 . . Br. 600,000 Br. 400,000 a) Compute the unit product cost by using absorption costing. b) Compute the unit product cost by using variable costing. c) Prepare income statement under absorption and variable costing 3. Honey butter, Inc., manufactures a product that goes through two departments prior to completion- the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June. Percent Completed Units Materials Conversion Work in process, 70,000 70% 40% beginning Started into production 460,000 Work in process, ending 450,000 75% 25% Work in process, $36,500 $13,500 beginning Cost added during June $391,850 $287,300 Required: A. Assume that the company uses the weighted-average method; i. Determine the equivalent units for June for the Mixing Department. ii. Compute the costs per equivalent unit for June for the Mixing Department. iii. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. iv. Prepare a cost reconciliation report for the Mixing Department for June.