Denton Company manufactures and sells a single product. Cost data for the product are given: $ 5 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 19 $ 108,000 163,000 $ 271,000 The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 27,000 27,000 Units Sold 23,000 31,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $1,219,000 506,000 713,000 186,000 $ 527,000 August $1,643,000 682,000 961,000 194,000 $ 767,000 Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 00 Net operating income (loss) os Required 1 Required 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)