Buddy, Inc. produces and sells only one product. The following data refer to the year just completed:

Beginning Inventory 0 units

Units produced........................... 10,000

Units sold...................................... 8,000

Sales price per unit.................... $250

Variable selling and administrative expenses per unit $ 12

Fixed Selling and administrative expenses (Total) $190,000

Manufacturing Costs:

Direct materials cost per unit..................................................$ 50

Direct labor cost per unit..........................................................$ 75

Variable manufacturing overhead cost per unit..............$ 15

Fixed manufacturing overhead (Total).................................$160,000

Required: a. What is the unit product cost for the month under variable costing?

b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the year using variable costing.

d. Prepare an income statement for the year using absorption costing.