QUESTION THREE (14 marks) Mahugh Company, which has only one product, has provided the following data concerning its most recent month of operations January 31, 2021 Selling Price/unit $122 Ending Inventory, Dec 31, 2020 Per Financial statements $21,000 Units Beginning Inventory 2 Ending Inventory 400 Production 8,300 Sales 8,100 Variable cost per unit Direct Material $27 Direct Labour 46 Variable manufacturing overhead 4 Variable selling and administration 7 Fixed costs Fixed Manufacturing overhead $165,000 Fixed Selling and admin 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