Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 10 2 $ 19 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $75,000 175,000 $ 250,000 The product sells for $54 per unit. Production and sales data for July and August, the first two months of operations, follow Units Produced 15,000 Units Sold 11,000 19,000 July August 15, 000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 594,000 1,026,000 418,000 608,000 213,000 $ 155, 000 395,000 242,000 352,000 197,000 Required: 1. Determine the unit product cost under: a. Absorption costing b. Variable costing 2. Prepare contribution format variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes Required 1Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing Unit Product Cost a. Absorption costing b. Variable costing Required 1 Required 2 Required 1 Required 2 E Required 3 Prepare contribution format variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 Net operating income (loss) Required 1 Required 3 Required 1Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July August Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) Required 2 Required 3