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 Fixed costs per monthi Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 11 3 3 $ 23 $ 126,000 163,000 $ 289,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, follow. Unite Units Produced Sold July 21,000 17,000 August 21,000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales July $ 833,000 August $1,225,000 Cost of goods sold 442,000 650,000 Gross margin 391,000 575,000 Belling and administrative expenses 214,000 230,000 Net operating income $177,000 $ 337,000 Required: 1. Determine the unit product cost under a. Absorption costing. Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 833,000 442,000 $1,225,000 650,000 391,000 575,000 214,000 238,000 $177,000 $ 337,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. a. Absorption costing b. Variable costing Unit Product Cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement Net operating income (loss) July August 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing Income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating Incomes. Complete this question by entering your answers in the tabs below. 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 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) July August