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 date 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 13 11 8 $ 42 $194,000 116,400 $310,400 The product sells for $59 per unit. Production end sales date for May and June, the first two months of operations, are as follows: May Units Produced 19,400 19,400 Units Sold 15,200 23,600 Save & Exit June Income statements prepared by the Accounting Department using absorption costing are presented below. June Bay $ 896,000 $1,302,400 Sales Cost of goods sold: Beginning inventory Add cost of goods manufactured Goods available for sale Less endine inventory 853,600 184,800 853,600 853,600 1,038,400 184,800