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The EG Company produces and sells single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 25,500 Units sold

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

Beginning inventory 0
Units produced 25,500
Units sold 22,300
Selling price per unit $ 484
Selling and administrative expenses:
Variable per unit $ 25
Fixed (total) $ 312,200
Manufacturing costs:
Direct materials cost per unit $ 237
Direct labor cost per unit $ 50
Variable manufacturing overhead cost per unit $ 31
Fixed manufacturing overhead (total) $ 357,000

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. (Omit the "$" sign in your response.)

Cost per unit
Absorption costing $
Variable costing $

b.

Prepare an income statement for the year using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Absorption Costing Income Statement
$
$

c.

Prepare a contribution format income statement for the year using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Variable Costing Income Statement
$
Variable expenses:
$
Fixed expenses:
$

d.

Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. (Omit the "$" sign in your response.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Net operating income under variable costing $
:
Net operating income under absorption costing $

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