Normal-Absorption Costing Justin and Andrea Doll Company produces and sells tennis balls. The following costs are available for the year ended December 31 , 2022. The company has no beginning inventory. In 2022, the company produced 8 million units but sold only 7.5 million units. The unit selling price was $0.50 per ball. Costs and expenses were as follows: V A Justin and Andrea Doll Company expenses the production volume variance to cost of goods sold in the accounting period in which it occurs. a. Calculate the manufacturing cost of one unit of product using normal-absorption costing. b. Prepare a 2022 income statement for Justin and Andrea Doll Company using normal-absorption costing. ACTION PLAN - Remember that, under normal-absorption costing, fixed manufacturing costs are treated as manufacturing costs based on a budgeted volume, not on actual production. - Add the production volume variance to cost of goods sold in the accounting period in which it occurs when the budgeted volume is greater than the actual production