Selected cost data relating to the product and to the first month of operations follow:

Units produced $53,800$

Units sold $42,400$

Variable costs per unit:

Direct materials $ $1\mathrm{.}30$

Direct labour $ $1\mathrm{.}15$

Variable manufacturing overhead $ $0\mathrm{.}37$

Variable selling and administrative expenses $ $1\mathrm{.}05$

Required:

$1.$ Complete the following:

a$.$ Compute the unit product cost under absorption costing. $($Round your answer to $2$ decimal places.$)$

b$.$ Redo the company$$s income statement for the month using absorption costing. $($Do not leave any empty spaces; input a $0$ wherever it is required.$)$

c$.$ Reconcile the variable and absorption costing operating income $($loss$)$ figures. $($Loss amounts should be entered with a minus sign.$)$

$2.$ This part of the question is not part of your Connect assignment.

$3.$ During the second month of operations, the company again produced $53,800$ units but sold $65,200$ units. $($Assume no change in total fixed costs.$)$

a$.$ Prepare a contribution format income statement for the month using variable costing.

b$.$ Prepare an income statement for the month using absorption costing. $($Do not leave any empty spaces; input a $0$ wherever it is required.$)$

c$.$ Reconcile the variable costing and absorption costing operating income figures.