Assignment Question for Chapter o: PEOBLBM 8-12 Variable and Abserption Costing Enit Product Costs and Income Statements; Explanation of Difference in Operating Income [\$2, LO1, 52 LO2, [P LO3] Coverall Inc prodoces and sells a unique type of case for a standardsize tablet computer that is guaranteed waterptoof bet still altowi for regalar functionality of the tablet. The company bas juat opened a new plant to manufacture these cases, and the folsowing cost and revenae data have been prosided for the frit month of the plant's operasion in the form of a worksheet: Since the nrw case is unique in detign, management is asxious to see how prontable it will be and bas atked that an income statement be prepared for the month. Requincal 1. Asmame that the company uses absorption costing. a. Determine the unit product cost. b. Piepare an income statemeat for the mosth. 2. Asrume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for the month 3. Explain the reavon for any difference in the ending inveatory balances under the two costing methodi and the intpact of this difference on reported operating income