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Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 6 Direct labor 1% Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 20 Fixed costs per month: Fixed manufacturing overhead $ 120,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 285.300 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: Pyondlutcsed Units Sold July 24, 000 20. 000 August 24, one 28. our) The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 1,000,000 $ 1,400,000 Cost of goods sold 480,000 672,000 Gross margin 520,000 728,000 Selling and administrative expenses 186,000 194,000 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Sales $ 1,000,000 $ 1,400,000 Variable expenses: Variable cost of goods sold 340,000 X 476,000 X Variable selling and administrative expenses V 20,000 28,000 640,000 X 896,000 XSales is 1,000.0000 $ 1,400.0000 Variable expenses: Variable cost of goods sold 340.000 6 476.000 6 Variable selling and administrative expenses 20,000 0 28,000 0 640.000 9 896.000 9 1,400,000 Total variable expenses 1,000,000 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Total xed expenses '3} O Net operating income (loss) ( Required1 Required3 ) 9 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as i value.) Variable costing net operating income (loss) _ Add (deduct) xed manufacturing overhead cost deferred in (released from) inventory under absorption costing 24'000 6 (24900) 6 Absorption costing net operating income (loss) _