Accounting 1a,b 2,3

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 12 S 22 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total rixed cost per month s 90,000 172,000 262, 000 The product-sells for $49 per unit. Production and sales data for July and August, the first two months of operations,folow Units Produced 18,000 August 18,00022,000 Sold 14, 000 July The com pany's Accounting Department has prepared the following absorption costing income statements for July and August July $686,000 336, 000 350, 000S 214,000 Auguat ales Cost of goods sold Gross margn Selling and administrative expenses Net operating income s 1,078,000 528,000 550, 00d 230,000 136,000 312, 000