Chapter 4 Stay Safe Supplies Stay Safe Supplies has started manufacturing and selling lightweight facemasks. Stay Safe has the following cost and revenue data from December, the first month of facemask production: Inventory (Units) Beginning Inventory Quantity Produced Quantity Sold Variable Selling & Administrative Expense (per unit) $ Fixed Selling & Administrative Expense (Total) $ 0.50 200,000 250,000 225,000 Sales price / unit $ 12 Manufacturing Costs: Direct material cost (per unit) Direct labor cost (per unit) Variable manufacturing overhead (per unit) Fixed manufacturing overhead (total) $ $ $ $ 1.50 2.00 1.50 350,000 Assume that the company uses variable costing. 1) What is the unit product cost? 2) Prepare an income statement for December 3.) What is the value of ending inventory using variable costing? Assume the company uses absorption costing. 4) What is the unit product cost? 5) Prepare an income statement for December 6.) What is the value of ending inventory using absorption costing? 7) Complete a reconciliation of Net operating income from variable costing to absorption costing for Stay Safe Supplies