Chapter 20 Practice Problem It's A Wonderful Life, Inc, had the below production and administrative costs for the of December Units Produced Units Sold 65,000 50,000 Sales Price Per Unit $ 125.00 Production Costs: Direct Materials Direct Labor Variable Manufacturing Costs Fixed Manufacturing Costs Total Product Costs $ $ $ $ $ 975,000 1,300,000 325,000 487,500 3,087,500 Selling & Administrative Expenses: Variable Selling & Administrative Expenses Fixed Selling & Administrative Expenses $ $ 415 000 500,000 Instructions 1) Calculate the units in ending inventory. 2) Calculate the product cost per unit for absorption costing, 3) Calculate the product cost per unit for variable costing. 4) Prepare an Absorption Costing Income Statement for the month of January 5) Prepare a Variable Costing Income Statement for the month of January. 6) Prepare the two step reconciliation of the two statements