Q3: A company manufactures a unique device that is used to boost Wi-Fi signals. The following data relates to the first month of operation: lBeginning inventory 0 lUnits produced 40,000 lUnits sold 35,000 lSelling price per unit $120 Selling and administrative expenses: l Variable per unit $4 l Fixed (total for the month) $1,120,000 Manufacturing costs: l Direct materials cost per unit $30 l Direct labor cost per unit $14 l Variable manufacturing overhead cost per unit $4 l Fixed manufacturing overhead cost $1,280,000 Management is anxious to see the profitability of newly designed unique booster. Required: lPrepare income statement under two costing systems. lPrepare a schedule to reconcile the net operating income under variable and absorption costing system.