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: O 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) Your answer is partially correct. Try again. 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 y 1,209,600 Cost of goods sold 2 Beginning inventory Add . Costs of goods manufactured 578,200 Goods available for sale 1,787,800 49,000 1,738,800 Less . Ending inventory YGross margin Less Selling and administrative expenses Operating income before tax LINK TO TEXT LINK TO TEXT