Variable manufacturing 3 overhead Variable selling and administrative 2 Total variable cost per $ 21 unit Fixed costs per month: Fixed manufacturing $ 72,000 overhead Fixed selling and administrative 163,000 Total fixed cost per month $235,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, $ follow: Units Units Produced Sold July 18,000 14,000 August 18,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $672,000 $1,856,000 Cost of goods sold 322,880 506,000 Gross margin 350.000 550,000 Selling and 191,880 207,000 administrative expenses Net operating income $159,000 $ 343,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 0 0 n 0 n Not Anoin in me e Variable manufacturing 3 overhead Variable selling and administrative 2 Total variable cost per $ 21 unit Fixed costs per month: Fixed manufacturing $ 72,000 overhead Fixed selling and administrative 163,000 Total fixed cost per month $235,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, $ follow: Units Units Produced Sold July 18,000 14,000 August 18,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $672,000 $1,856,000 Cost of goods sold 322,880 506,000 Gross margin 350.000 550,000 Selling and 191,880 207,000 administrative expenses Net operating income $159,000 $ 343,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 0 0 n 0 n Not Anoin in me e