4RACK ENT Question 1 Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a delus portable cooking unit. Cost and sales data for the first month of operations are shown below: Beginning inventory 0 units Units produced 10,900 Units sold 8.900 Manufacturing costs Fixed overhead $109,000 Variable overhead $7 per unit Direct labour $10 per unit Direct material $20 per unit Selling and administrative costs Fixed $196,000 Variable $3 per unit sold The portable cooking unit sells for $111. Management is interested in the opening month's results and has asked for an income statement Assuming the company uses absorption costing (a) Your answer is correct. Calculate the manufacturing cost per unit. Manufacturing cost 56 per unit (b) Prepare an absorption-costing income statement for the first month of operation. Fresh Air Products Income Statement-Absorption Costing For the first month of operations 17