Louie's Meals produces frozen meals, which it sells for $9 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: (Click the icon to view the data.) Read the requirements. 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. Total product cost January February Absorption Variable Absorption Variable costing costing costing costing $ 3.60 $ 3.00 $ 3.75 $ 3.00 Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing. Louie's Meals Income Statement (Absorption Costing) Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Month Ended January 31 February 28 $ 9,000 $ 12,600 3,600 5,175 5,400 7,425 1,300 1,700 4,100 $ 5,725 Requirement 2b. Prepare Louie's Meals' January and February income statements using variable costing. Louie's Meals Contribution Margin Income Statement (Variable Costing) Month Ended Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Data Table January February Sales.. 1,000 meals 1,400 meals Production... 1,500 meals 1,200 meals Variable manufacturing expense per meal... ... $3 $3 Sales commission expense per meal... $1 $1 Total fixed manufacturing overhead $900 $900 Total fixed marketing and administrative expenses.. $300 $300 Print Done Check Answer ?