Problem 6-22 (Static) Variable Costing Income Statements; Income Reconciliation [LO6-1, LO6-2, LO6-3] 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 $ 315,000 Fixed selling and administrative 245,000 Total fixed cost per month $ 560,000 The product sells for $60 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 17,500 17,500 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July August The company's Accounting Department has prepared the following absorption costing income statements for July and August. Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. Units Sold 15,000 20,000 Q Search $7 10 5 3 $25 July $ 900,000 600,000 300,000 290,000 $ 10,000 August $ 1,200,000 800,000 400,000 305,000 $ 95,000 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. Prey 1 of 1 Next W N Z

Problem 6-22 (Static) Variable Costing Income Statements; Income Reconciliation [LO6-1, LO6-2, LO6-3] Denton Company manufactures and sells a single product. Cost data for the product are given: The product sells for $60 per unit. Production and sales data for July and August, the first two months of operations, follow. The company's Accounting Department has prepared the following absorption costing income statements for July and August 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. Comolete this auestion bv enterina vour answers in the tabs below