calculate total product cost and prepare an income statement using absorption costing. 8.12 (LO 1, 3) Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new factory to anufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory o units Units produced Units sold Manufacturing costs 4 Fixed overhead Variable overhead Direct labour Direct materials Selling and administrative costs Fixed Variable 12,000 10,000 $108,000 $3 per unit $12 per unit $30 per unit $200,000 3 $4 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement. Instructions Assuming the company uses absorption costing: a. Calculate the manufacturing cost per unit. b. Prepare an absorption-costing income statement for the first month of operation. Calculate total product cost and prepare an income statement using variable costing. mmotion for Fresh Air Products is given in D8 12

lculate total product cost and prepare an income statement using absorption costing. 8.12 (LO 1, 3) Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new factory to anufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: he portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement. nstructions ssuming the company uses absorption costing: a. Calculate the manufacturing cost per unit. b. Prepare an absorption-costing income statement for the first month of operation. alculate total product cost and prepare an income statement using variable costing. lculate total product cost and prepare an income statement using absorption costing. 8.12 (LO 1, 3) Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new factory to anufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: he portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement. nstructions ssuming the company uses absorption costing: a. Calculate the manufacturing cost per unit. b. Prepare an absorption-costing income statement for the first month of operation. alculate total product cost and prepare an income statement using variable costing