Mahugh Company, which has only one product, has provided the following data concerning its

most recent month of operations:

Selling Price: $ 121

Units in beginning inventory: 0

Units produced: 8200

Units sold: 8,100

Units in ending inventory: 100

Variable costs per unit:

Direct materials : $30

Direct labour :50

Variable manufacturing overhead: 3

Variable selling and administrative 9

Fixed costs:

Fixed manufacturing overhead: $199,400

Fixed selling and administrative: 106,800

Foryoutoanswer:

a)Whatistheunitproductcostforthemonthundervariablecosting?

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

c) Prepare an income statement for the month using the contribution format and the variable

costing method.

d) Prepare an income statement for the month using the absorption costing method.

e) Reconcile the variable costing and absorption costing operating incomes for the month.