Denton Company manufactures and sells a single product. Cost data for the product are given: Variable coats per uniti Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cont per unit Fixed costs per month Fixed manufacturing overhead $ 109,000 Fixed selling and administrative 169,000 Total fixed cost per month $ 277,000 The product sells for $54 per unit. Production and sales data for July and August, the first two months of operations, follow: $ 5 11 3 2 $ 21 July August Units Produced 27,000 27,000 Units Sold 23,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 1,242,000 $.1,674,000 cost of goods sold 529,000 713,000 Gross margin 713,000 961,000 Selling and administrative expennen 215,000 231.000 Net operating income 499,000 $ 730,000 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 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 Net operating income (los) 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 not operating incomo loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss)