QUESTION THREE (14 marks) Mabugh Company, which has only one product, has provided the following data concerning its most recent month of operations-January 31, 2021 $122 $21,000 400 8,300 8,100 Selling Price/unit Ending Inventory, Dec. 31, 2020 Per Financial statements Units: Beginning Inventory. Ending Inventory Production Sales Variable cost per unit Direct Material Direct Labour Variable manufacturing overhead Variable selling and administration Fixed costs Fixed Manufacturing overhead Fixed Selling and admin. $27 46 4 7 $166.000 106,600 Required: a) How many units are in beginning inventory? (1 mark) b) What is the product cost per unit of beginning inventory under the absorption method? (1 mark) c) What is the product cost per unit in January under the absorption method? (2 marks) d) Prepare an income statement in good form for this month using the contribution format and the variable costing method. (6 marks) e) Reconcile the variable costing and absorption costing operating incomes for this month. The net income for absorption is $37,600. (4 marks)