Marty's Entrees produces frozen meals, which it sells for $$8$ each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing ov 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 busine

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.

$\backslash$table$[[,$January,February$],[,\backslash$table$[[$Absorption$],[$costing$]],$Variable,Absorption,Variable$],[,,,$costing,costing$],[$Total product cost,,,,$]]$

Requirement $2$a$.$ Prepare separate monthly income statements for January and for February, using absorption costing.

Marty's Entrees

Income Statement $($Absorption Costing$)$

Month Ended

'ement $2$b$.$ Prepare Marty's Entrees' January and February income statements using v

Marty's Entrees

Contribution Margin Income Statement $($Variable Costing$)$

Month Ended

February $28$

ss: January $31$

January

Febr$$ary

$1,400$ meals

$1,800$ meals

$2,000$ meals

$1,400$ meals

$$5$

$$5$

$$1$

$$1$

$$700$

$$700$

$$600$

$$600$