Return to questio Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit $ 20 Fixed costs per month: Fixed manufacturing overhead $ 63, 000 Fixed selling and administrative 172, 000 Total fixed cost per month $ 235,000 The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July 21,000 17 , 000 August 21, 000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 884 , 000 $ 1, 300, 000 Cost of goods sold 357 , 000 525,000 Gross margin 527, 000 775,000 Selling and administrative expenses 206, 000 222 ,000 $ 321, 000 $ 553, 000 Net operating incomecorrect for the work you have completed so far. It does not indicate completion. Return to question Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. (x) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing Unit Product Cost a. Absorption costing 21 b. Variable costing 18 Required 2 > \fReturn to questi 3. Reconcile the variable costing and absorption costing net operating incomes. x) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July August Variable costing net operating income (loss) $ 107,000 $ 237,000 (X Add (deduct) fixed manufacturing overhead cost deferred in (released from) 4,000 (4,000) inventory under absorption costing Absorption costing net operating income (loss) $ (103,000) * $ 233,000 X