The Dorset Corporation produces and sells a single product, the data for which is as follows: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year Required: (a) Compute the unit product cost under both absorption and variable costing. (b) Prepare an income statement for the year using absorption costing. (c) Prepare an income statement for the year using variable costing. (d) Reconcile the absorption costing and variable costing net operating incomes. 0 9,000 7,000 $47 $4 $ 58,000 $ 10 $6 $5 $ 90,000

The Dorset Corporation produces and sells a single product. the data for which is as follows: Required: (a) Compute the unit product cost under both absorption and variable costing. (b) Prepare an income statement for the year using absorption costing. (c) Prepare an income statement for the year using variable costing. (d) Reconcile the absorption costing and variable costing net operating incomes