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 Total variable costs per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrativa Total fixed cost per month. 19 16 $167,400 110,200 $297,600 The product sells for $54 per unit. Production and sales data for May and June, the first two months of operations, are as follows: May June Units Produced 18,000 10,600 Delts Sold 14,000 22,400 Income statements prepared by the Accounting Department using absorption costing are presented below: Sales Cost of goods sold Beginning inventory Add cost of goods manufactured Goods available for sale Less ending inventory Cost of goods sold May 299,200 $1,200, 600 June 159,000 781,200 781,200 781,200 140,800 159,600 621,600 840,000 Check my wo Income statements prepared by the Accounting Department using absorption costing are presented below. May $ 799,200 $1,209,600 Sales Cost of goods sold: Beginning inventory Add cost of goods manufactured Goods available for sale Less ending inventory Cost of goods sold Gross margin Selling and administrative expenses Operating income 159,60 781,200 783,200 781,200 540,000 159,600 621,600 940,500 177,600 268,800 174,600 197,400 $ 3,000 $ 71,400 Required: 1. Determine the unit product cost under each of the following methods. a Absorption costing b Vanable costing 2. Prepare variable costing income statements for May and June using the contribution approach. (Do not leave any empty spaces it is required.) 2. Prepare variable costing income statements for May and June using the contribution approach. (Do not leave any empty spaces; input a O wherever it is required.) Variable expenses Variable cost of goods sold Total variable expenses Fixed expenses Total fixed expenses Operating income (loss) May June frared with a minus Fixed expenses Total fixed expenses Operating income (loss) 3. Reconcile the variable costing and absorption costing operating income figures. (Loss amounts should be indicated with a minus sign.) Variable costing operating income (loss) Add Cost deferred in inventory under absorption costing Deduct Cost released from inventory under absorption costing Absorption costing operating income 4. This part of the question is not part of your Connect assignment. May June < Prev 5 of 6 Next >>