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 Fixed 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: Units produced Units sold 5,020 4,040 Required: 1. Compute the unit product cost under each of the following costing method. a. Absorption costing b. Variable costing Unit Product Cost 305 207 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) X Answer is not complete. Sales $ 1,712,960 0 Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory Gross margin Selling and administrative expenses Operaing income 0 1,712.960 $ 1,712,960 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. $ 1,712,960 0 Sales Variable expenses: Variable cost of goods sold: Beginning inventory Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense Operating income lolololo 0 0 1,712,960 OOO 0 $ 1,712,960 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Answer is complete but not entirely correct. $ 256,942 Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) 198,672 455,614 $