3. Below is operating information of Weber Light Aircraft, a company that produces light recreational aircraft. Selling price Direct materials Direct labor Per Aircraft Per Month $900,000 $250,000 $175,000 Variable manufacturing overhead $15,000 $200,000 Variable selling and administrative expense $50,000 Fixed selling and administrative expense $70,000 Fixed manufacturing overhead Beginning inventory Units produced Units sold Ending inventory January February March 0 0 2 2 4 3 2 2 5 0 2 0 3A. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for January, February and March. 3B. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for January, February and March. |