Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs : Variable costs per unit: Direct materials Variable manufacturing overhead Pixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) $ 188 $ 19 $491,960 5% of sales $296,180 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $424 each. During the first month of operations, the following activity was recorded: 5,020 Units produced Units sold 4,040 Required: 1. Compute the unit product cost under each of the following costing method. Answer is complete and correct. Unit Product Cost 305 207 a. Absorption costing Variable costing b. 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is required.) X Answer is complete but not entirely correct. Sales $ 1,712,960 $ 0 Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Add: Ending inventory Gross margin Selling and administrative expenses Operaing income 1,531,100 1,531,100 298,900 1,232,200 480,760 85,648 $ 395,112 3. Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input a 0 wherever it is required.) Answer is not complete. Sales Variable expenses: Variable cost of goods sold: Add: Variable manufacturing costs Variable selling and administrative expense Less: Ending inventory 00 0 0 0 0 Fixed expenses: 0 $ 0 4. This part of the question is not part of your Connect assignment. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Answer is not complete. Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) $ 0