3. Wilson Corporation produces a single product. Data concerning the companys operations last year appears below:

Units in beginning inventory. 0

Units produced... 10,000

Units sold 9,180

Selling price per unit. $75.00

Variable costs per unit:

Direct materials $22.75

Direct labor.. $8.15

Variable manufacturing overhead $5.83

Variable selling and administrative... $5.50

Fixed costs in total:

Fixed manufacturing overhead $202,400

Fixed selling and administrative... $70,500

Required:

1. Compute the unit product cost under absorption costing. (2 points)

Absorption UNIT product cost = _______________

2. Compute the unit product cost under variable costing. (2 points)

Variable UNIT product cost = _________________

3. Prepare a traditional format income statement for the year using absorption costing. (4 points)

4. Prepare a contribution margin income statement for the year using variable costing. (4 points)

5. Reconcile the difference between the net income you computed under the two methods. (1 point)