Audiophonics Limited manufactures and sells high-quality and durable car buds for use with personat electronics that are custom moulded to each customer's eat 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 administrative Total fixed cost per month 10 101 10 5 43 $ $169,400 150,000 $123.400 The product sells for $66 per unit. Production and sales data for May and June, the first two months of operations are as follows: June Units Produced 15,400 15,400 Units Sold 13,200 37,600 Income statements prepared by the Accounting Department using absorption costing are presented below May June 5 871,200 $1,161,600 Sales Cost of goods sold: Beginning inventory Add cost of goods manufactured Goads available for sale 754.60 754,600 107,800 754,600 862,400 Check my 2 Income statements prepared by the Accounting Department using absorption costing are presented below May 367,200 $1,161, 20 107,00 754, 362,00 Cost of goods sold Beginning inventory cost of goods manufactured Good available for sale Less ending inventory Cost of os old ross margin Selling and administrative expenses Operating income 0 754,600 750,00 107,600 G46, 224,400 2.10.00 4,400 86,400 299,200 242,000 57 200 5 Required: 1. Determine the unit product cost under each of the following methods Absorption costing Variable costing 2. Prepare variable costing Income statements for May and June using the contribution approach. (Do not leave any empty spaces: Check my world 2 2. Prepare variable costing income statements for May and June using the contribution approach. Do not ovenyampty spaces Input wherever it is required) 20 om Vesponses Verse cost of goods sont 0 0 Foed opene Total de Operating income) 0 05 3. Reconcile the variable costing and absorption costing operating income figures (Loss amounts should be indicated with a minus sign. MY Variable costing operating income foss) Add Gout deferred in inventory under absorption costing Deduct Costruoased from inventory under absorption costing Absorption costing pating income 5 05