MUI Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 72,000 175,000 $ 247,000 rences The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow. Units Produced 18,000 18,000 Units Sold 14,000 22.000 July August The company's Accounting Department has prepared the following absorption costing Income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $ 658,000 294,000 364,000 203,000 $ 161,000 August $1,034,000 462,000 572,000 219,000 $ 353,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. IN Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 658,000 294,000 364,000 203,000 $ 161,000 $1,034,000 462,000 572,000 219,000 $ 353,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Unit Product Cost a. Absorption costing b. Variable costing Required 1 Required 2 > Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 0 Net operating income (loss) Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required 1 Required a Required 2 Required 2 Required 3 required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) August Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Variable costing net operating income (loss) Add (deduct) foxed manufacturing overhead cont deferred in (released from) Inventory under absorption costing Absorption costing net operating income (loss) Required 2