Wu Equipment Company manufactures and distributes industrial air compressors. The following data are avail- able for the year ended December 31, 2016. The company had no beginning inventory. In 2016, it produced 1,500 units but sold only 1,200 units. The unit selling price was $4,500. Costs and expenses were as follows:

Instructions
(a) Calculate the manufacturing cost of one unit of product using variable costing.
(b) Prepare a 2016 income statement for Wu Company using variable costing.
(c) Calculate the manufacturing cost of one unit of product using through put costing.
(d) Prepare a 2016 income statement for Wu Company using throughput costing.
(e) Reconcile the difference between variable-costing and through put-costing net income.

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Variable costs per unit Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses $800 1,500 300 70 Annual fixed costs and expenses Manufacturing overhead Selling and administrative expenses $1,200,000 100,000