Silvers Corporation manufactures and sells a single product. Cost data for the product are given: $ 3 11 3 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 18 $ 108,000 169,000 $ 277,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 27,000 27,000 Units Sold 23,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $1,127,000 483,000 644,000 192,000 $ 452,000 August $ 1,519,000 651,000 868,000 200,000 $ 668,000 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. 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 b. Variable costing Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) August Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Variable costing net operating income (Loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Silvers Corporation Variable Costing Income Statement July August 0 0 0 0 0 0 Net operating income (loss) $ 0 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) August Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Variable costing net operating income (Loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss)