Audiophonics Limited manufactures and sells high quality and durable ear buds for use with personal electronics that are custom moulded to each customer's ear. Cost data for the product follow: $ Variable costs per unit: Direct materials Direct labour Variable factory overhead Variable selling and administrative 10 13 11 8 Total variable costs per unit $ 42 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative $194,000 116,400 Total fixed cost per month $310,400 The product sells for $59 per unit. Production and sales data for May and June the first two months of operations, are as follows: May June Units Produced 19,400 19,400 Units Sold 15, 200 23,600 Income statements prepared by the Accounting Department using absorption costing are presented below: Check my wor Income statements prepared by the Accounting Department using absorption costing are presented below: Sales May June $ 896,800 $1,392,400 Cost of goods sold: Beginning inventory Add cost of goods manufactured 0 853,600 184,809 853,600 Goods available for sale Less ending inventory 853,600 184,800 1,038,400 o Cost of goods sold 668,800 1,038,400 Gross margin Selling and administrative expenses Operating income 228,000 238,000 354,000 305,200 $ (10,000)) $ 48,800 Required: 1. Determine the unit product cost under each of the following methods. a. Absorption costing b. Variable costing 0 0 Total fixed expenses Operating income (loss) $ 0 $ 0 3. Reconcile the variable costing and absorption costing operating income figures (Loss amounts should be indicated with a minus sign.) May June Variable costing operating income (loss) Add. Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing operating income S 0 S 4. Not available in Connect