Question 13 (19 points) On January 1, Sports kit Lid.created a new division to manufacture and sell youth hockey sticks. The following information is available for their first two months of operations: JANUARY Unit sales 12,000 Sales price per stick $55 Units produced 15,000 Direct material cost per unit $10 Direct labour cost per unit $8 Variable overhead unit cost $4 FEBRUARY 14,000 $60 15,600 $11 $7 S6 The variable selling and administrative expenses were 6% of sales in January and 5% of sales in February The fixed selling and administrative expenses are constant at $12,000 each month. Fixed manufacturing overhead was $30,000 in January and $39,000 in February. The FIFO inventory movement method is used REQUIRED: 1. Calculate the unit cost of production for each month using absorption costing and then using variable costing. (4 marks) 2. Prepare an income statement for the month of February using absorption costing (4 marks) 3 Prepare an income statement for the month of February using variable costing (7 marks) 4 Reconcile the operating incomes from the above two income statements (4 marks) Poragraph