Question 1 Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operations are shown below: 0 units 11,800 10,800 Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable $106,200 $4 per unit $11 per unit $25 per unit $198,000 $3 per unit sold The portable cooking unit sells for $112. Management is interested in the opening month's results and has asked for an income statement. Assuming the company uses absorption costing: (a) Your answer is correct. Calculate the manufacturing cost per unit. Manufacturing cost 49) per unit (b) Prepare an absorption-costing income statement for the first month of operation. Fresh Air Products Income Statement-Absorption Costing For the first month of operations Sales Cost of goods sold Beginning inventory Add . Costs of goods manufactured Goods available for sale Less Ending inventory Gross margin Less Selling and administrative expenses Operating income before tax LINK TO TEXT LINK TO TEXT