B7 B D SECTION 5 - QUESTION 3 - 23 marks Octane Industries, which has only one product, has provided the following data concerning its most recent month of operations: $90 110 6300 6000 410 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 2 Direct labour 3. Variable manufacturing overhead Variable selling and administrative 5 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $29 $20 $2 $6 $65,000 $36,400 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 New CLICK HERE TO SAVE YOUR WORK B7 B 21 22 Required: 24 a) What is the unit product cost for the month under variable costing? (3 marks) 25 26 Variable costing: 27 28 29 30 31 32 33 b) What is the unit product cost for the month under absorption costing? (3 marks) 34 35 Absorption costing: 36 37 38 39 40 41 42 Immand in the month within the animatrichiarathi SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 New 4 COPY B verline is Merge Cell 2. Insert Row 3+ DeleteRow Remove Condition CLICK HERE TO SAVE YOUR WORK BZ 40 41 42 43 c) Prepare an income statement for the month using the contribution format and the variable costing method. (6 marks) 45 Variable costing Income statement 46 48 49 50 51 52 53 54 55 56 57 58 59 60 61 SECTION 1 SECTION 2 I SECTION 3 SECTION 5 SECTION 4 New 60 61 62 d) Prepare an income statement for the month using the absorption costing method. (6 marks) 63 64 Absorption costing income statement 65 66 67 68 69 70 71 72 73 74 75 76 8 ee) Reconcile the variable costing and absorption costing operating incomes for the month. (5 m New... SECTION 5 SECTION 1 SECTION 4 SECTION 3 SECTION 2 78 79 e) Reconcile the variable costing and absorption costing operating incomes for the month. (5 marks) 80 81 Reconciliation 82 83 34 35 06 7 3 New... SECTION 5 SECTION 4 SECTION 3 SECTION 1 SECTION 2 I hp