Shelko Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:

Variable cost per unit:

Direct materials

Fixed costs per year:

$$98$

Direct labor

Fixed manufacturing overhead

$$1,176,000$

Fixed selling and administrative expenses

$$2,940,000$

$$1,443,000$

The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced $42,000$ units and sold $37,000$ units. The company's only product is sold for $$272$ per unit.

Required:

a$.$ Assume the company uses super$-$variable costing. Compute the unit product cost for the year and prepare an income statement for the year.

b$.$ Assume that the company uses an absorption costing system that assigns $$28$ of direct labor cost and $$70$ of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

c$.$ Prepare a reconciliation that explains the difference between the super$-$variable costing and absorption costing net incomes.M