Question I 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 Beginning inventory Units produced 10,600 Units sold 9,300 Manufacturing costs Fixed overhead $84,800 Variable overhead $4 per unit Direct labour $10 per unit $26 per unit Direct material Selling and administrative costs $198,200 Fixed Variable $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 48 per unit 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 1041,600 Cost of goods sold 0 Beginning inventory Add Costs of goods manufactured 508,800 Goods available for sale 508,800 Ending inventory Less 62,400 446,400 Gross margin 595,200 X Selling and administrative expenses 198,200 Less X Operating income before tax