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Stark and Company would like to evaluate one of the product lines that they sell to the defense department...... Stark and Company would like to

Stark and Company would like to evaluate one of the product lines that they sell to the defense department......

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Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price 5105 Units in beginning inventory 110 Units produced 6,400 Units sold 6,100 Units in ending inventory 600 Variable costs per unit: Direct materials $62 Direct labour $48 Variable manufacturing $3 overhead Variable selling and $7 administrative Fixed costs: Fixed manufacturing overhead $64,000 Fixed selling and administrative $35,600 Required: 1. Under variable costing, identify_ the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and the variable costing method. 4. Prepare an income statement for the month using the absorption costing method

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