The EG Company produces and sells one product. The following data refer to the year just completed:

Beginning inventory		0
Units produced		28,100
Units sold		21,900
Sales price per unit	$	410
Selling and administrative expenses:
Variable per unit	$	23
Fixed (total)	$	306,600
Manufacturing costs:
Direct materials cost per unit	$	229
Direct labor cost per unit	$	58
Variable manufacturing overhead cost per unit	$	36
Fixed manufacturing overhead	$	421,500

Assume that direct labor is a variable cost.

Required:

a.	Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

b.	Prepare an income statement for the year using absorption costing.

c.	Prepare a contribution format income statement for the year using variable costing.

d.	Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.