Computing operating income

Decker, Inc. has collected the following data for November (there are no beginning inventories):

Organic, Inc. has collected the following data for November (there are no beginning inventories):

Units produced and sold .........450 units

Sales price ................ $ 275 per unit

Direct materials .............. 52 per unit

Direct labor .............. 64 per unit

Variable manufacturing overhead ...... 18 per unit

Fixed manufacturing overhead ....... 7,875 per month

Variable selling and administrative costs ... 25 per unit

Fixed selling and administrative costs ..... 4,950 per month

Requirements

1. Using absorption costing, calculate the unit product cost.

2. Prepare an income statement using the traditional format.

3. Using variable costing, calculate the unit product cost.

4. Prepare an income statement using the contribution margin format