Jason's Meals produces frozen meals, which it sells for $10 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. January February Absorption Variable Absorption Variable costing costing costing costing Total product cost $ 3.35 $ 3.00 $ 3.50 $ 3.00 Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing. Jason's Meals Income Statement (Absorption Costing) Month Ended January 31 February 28 Sales revenue $ 15,000 17000 Less: Cost of goods sold 5,025 Gross profit 9,975 Less: Operating expenses 3,600 Operating income $ 6,375Data Table January February Sales ................................ 1,500 meals 1,700 meals Production ................................ 2,000 meals 1,400 meals Variable manufacturing expense per meal ......... $3 Sales commission expense per meal $2 Total fixed manufacturing overhead ............. $700 Total fixed marketing and administrative expenses . . $500