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Please show all your work and show your steps. Clearly explain your answer and the steps you take. If writing, please write neatly, no cursive,

Please show all your work and show your steps. Clearly explain your answer and the steps you take. If writing, please write neatly, no cursive, and write in a linear fashion.

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Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 0 25,000 21,500 3,500 $ Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative 8 10 2 4 Total variable cost per unit $ 24 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 75,000 110,000 Total fixed costs $ 185,000 Assume that the company uses absorption costing. Required: 1. Compute the unit product cost for one storage cabinet. Unit product cost 2. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Absorption Costing Income Statement Cost of goods sold: Selling and administrative expenses

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