I need help with the part( B) of the question :

Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operations are shown below:

Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the rst month of operations are shown below: Beginning inventory 0 units Units produced 10,900 Units sold 9,700 Manufacturing costs Fixed overhead $130,800 Variable overhead $7 per unit Direct labour $9 per unit Direct material $29 per unit Selling and administrative costs Fixed $206,400 Variable $4 per unit sold The portable cooking unit sells for $112. Management is interested in the opening month's results and has asked for an income statement. V (a) Your answer is correct. Assuming the company uses variable costing: 1. Calculate the manufacturing cost per unit. Manufacturing cost $1 per unit 2. Prepare a variable-costing income statement for the first month of operation. Fresh Air Products Income Statement-Variable Costing For the first month of operations 1086400 V Sales Less Variable costs I 1D 1} ' IJI 1} 8-!- Variable cost of goods sold 435500 38800 Total variable costs 475300 Contribution margin 611100 Less : Variable selling and administrative expenses K l'x II 4} 1} Fixed costs I 4" (x l' t 1} Fixed selling and administrative expenses : 205400 Fixed manufacturing Overhead 130800 Total fixed costs 337200 v {D . . 273900 Operating Income before tax |' v (b) Reconcile the difference in net income between the absorption-costing and variable-costing methods. Variable costing operating income $ Fixed manufacturing overhead costs deferred in ending inventory Absorption costing operating income $