I need help with number 3.
Denton Company manufactures and sells a single product. Cost data for the product are glven Variable costs per unitr Direct labor 10 riable manufacturing overhead Variable selling and administrative Total variable cost per t s 25 Fixed costs per months Pixed manafacturing overhead Pixed selling andadninistrative Total fixed cost per month 315,000 245,000 560,000 The product sells for $60 per unit. Production and sales data for July and August, the first two months of operations, follow Taly Aogust 17.500 20,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August s 900,000 $1,200,000 600.000800,000 Cost of goods sold Set operating income E 10,000 95,000 1 Determine the unit product cost under Prey 30, 41ll Next > Fs 8 3 4 0 Net operating income 10,000 95,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare contribution format 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 40 a. Absorption costing b. Variable costing Required 1Required 2 Required 3 Prepare contribution format variable costing income statements for July and August. Denton Company Variable Costing Income Statement Sales s 900,000 $1,200,000 Variable expenses Variable cost of goods sold Variable selling and administrative expenses 330,000 45,000 440,000 60,000 es 375,000 500,000 Total variable expenses Contribution margin Fixed expenses: 25,000700,000 315,000 315,000 Fixed manufacturing overhead Fixed selling and administrative expenses 245,000 245,000 560,000 560,000 Total fixed expenses Net operating income (loss) $ (35,000) $140,000 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare contribution format varilable 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. ok Required 1 Required 2 Required 3 Int Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) ences Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July s (35,000) 140,000 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) Required 2