c$.$ Reconcle the varisble snd absorption costing opersting income $($oss$)$ figurea. $($Loss smounts should be entered with s minus

sign.$)$

This part of the questan is nat part of your Connect sasignment.

During the second manth of operations, the company sgsin praduced $57,600$ units but sold $69,600$ un:s$.($Aasume no chsnge in

totsl fixed coats.$]$

a$.$ Prepare $s$ contribution formst income statement for the month using varisble coating.

b$.$ Prepsre an income ststement for the month using absorption costing. $($Do nat leave any empty spaces; liput a $0$ wherever it is

required.$)$

c$.$ Reconcle the varisble costing and absorption costing opersting incame figures.Leander Office Products Inc. produces and sells small storage and organizational products for office use. During the first month of

operations, the products sold well. Andrea Leander, the owner of the company, was surprised to see a loss for the month on her

income statement. This statement was prepared by a local bookkeeping service recommended to her by her bank manager. The

statement follows:

$$ Consists of direct materlals, direct labour, and varlable manufacturing overhead.

Leander is discouraged over the loss shown for the month, particularly since she had planned to use the statement to encourage

investors to purchase shares in the new company. A friend who is an accountant insists that the company should be using absorption

costing rather than varlable costing. He argues that if absorption costing had been used, the company would probably have reported

profit for the month.

Selected cost data relating to the product and to the first month of operations follow:

Required:

Complete the following:

a$.$ Compute the unlit product cost under absorption costing. $($Round your answer to $2$ decimal places.$)$

b$.$ Redo the company's Income statement for the month using absorption costing. $($Do not leave any empty spaces; input a $0$

wherever it is required.$)$