Game Play manufactures video games that it sells for $44 each. The company uses a fixed manufacturing overhead allocation rate of $4 per game. Assume all costs and production levels are exactly as planned. The following data are from Game Play's first two months in business during 2018:

OCTOBER: Sales=2000 units

Production=2300 units

Variable manufacturing cost per game=$13

Sales commission $3

Total fixed manufacturing overhead=$ 9200

Total fixed selling and administrative costs=$ 8500

NOVEMBER: Sales=2400 units

Production=2300 units

Variable manufacturing per game=$13

Sales commission cost per game=$3

Total fixed manufacturing overhead=$9200

Total fixed selling and administrative costs=$8500

REQUIREMENTS:

1. Compute the product cost per game produced under absorption costing and variable costing

2. Prepare monthly income statements for October and November , including columns for each month and a total column, using there costing methods;

a) absorption costing

b) variable costing