$50 Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year $11 $6 $3 $120,000 $4 $70,000 Year 2 Units in beginning inventory Units produced during the year Units sold during the year Year 1 0 10,000 8,000 6,000 8,000 Enter a houli eguhof the sels marked'octha baba Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 0 ? ? ? Year 2 ? ? ? Compute the Absorption Costing Unit Product Cost Year 1 Year 2 Direct materials ? ? Direct labor ? ? Variable manufacturing overhead ? ? Fixed manufacturing overhead ? Absorption costing unit product cost ? Construct the Absorption Costing Income Statement Year 1 Year 2 Sales ? Cost of goods sold ? ? Gross margin ? ? Selling and administrative expenses ? ? Net operating income ? ? Compute the Variable Costing Unit Product Cost Year 1 Year 2 Direct materials ? ? Direct labor ? ? Variable manufacturing overhead ? ? Variable costing unit product cost ? ? Year 2 ? Construct the Variable Costing Income Statement Year 1 Sales Variable expenses Variable cost of goods sold ? Variable selling and administrative expense Contribution margin Fived expenses Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income ? ? 2