Please answer the questions by filling out the above tables.

ZKB company manufactures a unique device that is used by internet users to boost Wi-Fi signals. The following data relates to the first month of operation: Beginning inventory: 0 units Units produced: 40,000 units Units sold: 35,000 units . Selling price: $120 per unit Marketing and administrative expenses: Variable marketing and administrative expenses per unit: $4 Fixed marketing and administrative expenses per month: $1,120,000 Manufacturing costs: . Direct materials cost per unit: $30 Direct labor cost per unit: $14 .Variable manufacturing overhead cost per unit: $4 . Fixed manufacturing overhead cost per month: $1,280,000 Management is anxious to see the success as well as profitability of newly designed unique booster Required: Calculate unit product cost and prepare income statement under variable costing system and absorption costing system. 2. 1. Prepare income statement under two costing system. 3. Prepare a schedule to reconcile the net operating income under variable and absorption costing system (1) Calculation of unit product cost: Absorption Variable Costing Costing Direct Materials Direct labour Variable Manufacturing overhead Fixed manufacturing overhead Product Cost per Unit (2) Income statements: a. Absorption costing: ZKB Company Income Statement (Absorption Costing) Units Cost Total Sales Less COGS Opening Inventory Add Cost of Good Manufactured Cost of goods available for sale Less Closing Inventory Gross Profit Less marketing and admin.expenses Var marketing and admin expenses Fixed marketing and admin expenses Net Operating Income b. Variable costing: ZKB Company Income Statement (Variable Costing) Total Units Cost Sales ess COGS Opening Inventory 0 Add Cost of Good Manufactured Cost of goods available for sale Less Closing Inventory Gross contribution Margin Var marketing and admin expenses Contribution Margin Less marketing and admin.expenses Fixed manufacturing overhead expenses Fixed marketing and admin expenses Net Operating Income (3) Reconciliation schedule: unit total price Net Operating Income (loss) under variable costing add fixed manufacturing overhead deferred in inventory Net Operating Income under absorption costing