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 conta per month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $3 10 4 2. $ 19 $ 72,000 160,000 $ 232,000 The product sells for $48 per unit Production and sales data for July and August, the first two months of operations, follow: Units Produced Units sold July 24,000 20,000 August 24,000 28,000 The company's Accounting Department has prepared the following absorption costing Income statements for July and August July August Sales $ 960,000 $1,344,000 cost of goods sold 400,000 560,000 Gross margin 560,000 784,000 Selling and adminitrative expenses 200,000 216,000 Net operating income $360,000 $ 568,000 Required: 1. Determine the unit product cost under: a. Absorption costing. h Warishlarnetinn 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. Unit Product Cost a. Absorption costing b. Variable costing Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August Denton Company Variable Costing Income Statement July August Not operating incomo (loss) 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 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)