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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

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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 month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $4 10 3 2 $ 19 $ 135,000 160,000 $ 295,000 The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow: 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 $ 1,219,000 $1,643,000 Cost of goods sold 506,000 682,000 713,000 961,000 Selling and administrative expenses 206,000 222,000 Net operating income $ 507.000 $ 739,000 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. Unit Product Cost 8 Absorption costing b. Variable costing Ram 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 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 0 0 0 Net operating income (loss) $ 0 $

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