Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 3 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 3 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 108,000 Fixed selling and administrative 172,000 Total fixed cost per month $ 280,000 The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold July 27,000 23,000 August 27,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 1,219,000 $ 1,643,000 Cost of goods sold 460,000 620,000 Gross margin 759,000 1,023,000 Selling and administrative expenses 241,000 265,000 Net operating income $ 518,000 $ 758,000 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. famnlata tkie practinn hu antarinn UAHIR aneware in the the holow Drew 7 of 11 HBE Nini Selling and administrative expenses Net operating income 241,000 $ 518,000 265,000 $ 758,000 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 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) 502,000 $ 774,000 Add (deduct) fixed manufacturing overhead cost deferred in (released from) 20.000 inventory under absorption costing Absorption costing net operating income (loss) Required 2 Required a