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  3. 2 denton company manufactures and sells a single product cost...

Question: 2 denton company manufactures and sells a single product cost...

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2 Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost 10 6 points per uni $ 20 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 81,000 169.000 eBook $ 250,000 Print The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 27,000 27,000 Units Sold 23,000 31,000 References July August The companys Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $1,035,000 1,395,000 620,000 775,000 262,000 $ 337,000 513,000 460,000 575,000 238,000 Required 1. Determine the unit product cost under: a. Absorption costing b. Variable costing 2. Prepare contribution format variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.

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