The company produced the same number of units every month despite the sales in units vary from month to month. The companys variable costs per unit and total fixed costs have been constant from month to month. REQUIRED: (a) Determine the unit product cost for the month under: i. Variable costing ii. Absorption costing (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the month ended December 2020 using: i. Variable costing ii. Absorption costing (c) Reconcile the variable costing and absorption costing net operating income for the month of December 2020

Selling price $99 Units in beginning inventory $500 Units produced ? Units sold $6,900 Units in ending inventory $400 Variable cost per unit: Direct materials $41 Direct labor $28 Variable manufacturing overhead $3 Variable selling and administrative $8 Fixed costs: Fixed manufacturing overhead $47,600 Fixed selling and administrative $82,800