Mahugh Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$122

Units in beginning inventory

0

Units produced

8,300

Units sold

8,200

Units in ending inventory

100

Variable costs per unit:

Direct materials

$27

Direct labour

$46

Variable manufacturing overhead

$4

Variable selling and administrative

$7

Fixed costs:

Fixed manufacturing overhead

$199,200

Fixed selling and administrative

$106,600

Required: You must show all calculations.

a) What is the unit product cost for the month under variable costing?

b) What is the unit product cost for the month under absorption costing?

c) income statement for the month using the absorption costing method.