3A. Assume that the company uses variable costing:

a. Compute the unit product cost. (5)

b. Prepare an income statement for January, February and March. (5)

3B. Assume that the company uses absorption costing:

a. Compute the unit product cost. (5)

b. Prepare an income statement for January, February and March. (5)

mal text Y Times New... Y I 1 - 11 * 10 F + B IU A 2. 3. C Per Aircraft $900,000 $250,000 $175,000 $15,000 $50,000 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense Beginning inventory Units produced 2 Units sold 2 Ending inventory 0 2 3A. Assume that the company uses variable costing: a. Compute the unit product cost. (5) b. Prepare an income statement for January, February and March. (5) 3B. Assume that the company uses absorption costing: a. Compute the unit product cost. (5) January 0 February 0 4 2 March 2 3 5 0 5- Per Month $200,000 $70,000 b. Prepare an income statement for January, February and March. (5) . * 16