company that produces heavy duty earth moving machines. Data concerning the companys operations appear below:

	Per Equipment	Per Month
Selling price	100,000
Direct Material	19,000
Direct Labour	5,000
Variable manufacturing overhead	1,000
Fixed manufacturing overhead		70,000
Variable selling and admin expense	10,000
Fixed selling and administrative expense		20,000

Inventories	January	February	March
Beginning inventories	0	0	1
Units produced	1	2	4
Units sold	1	1	5
Ending inventories	0	1	0

Required:

a) Compute the variable costing unit product cost

b) Prepare the variable costing income statement

c) Compute the absorption costing unit product cost

d) Prepare the absorption costing income statement

e) Reconcile the operating profits under the two costing methods