Company A produces and sells a product. Here is the data for the last period of operation: Number of units in beginning inventory 0 Number of units produced during the period 10 000 Units sold during the period 8 000 Number of units in ending inventory 2,000 Selling price per unit $50 Manufacturing Costs: Variable cost per unit: Raw materials 11 Direct labor 6 Variable manufacturing costs 3 Fixed costs for the year $100,000 Selling and administrative costs: Variable cost per unit 5 Fixed costs for the year $70,000

Calculate:

1. If the company uses the full cost method, calculate: (a) the cost per unit of manufacturing b) prepare the income statement for the year

2. If the company uses the variable cost method, calculate a) the unit cost of manufacturing b) prepare the income statement for the year

3. Reconcile the differences between the two methods (net income) or how do you explain the difference in net income between the two methods?