Johns Company uses variable costing for internal reporting and absorption costing for external reporting. Below is the costs incurred for the current year.

Units sold 1,000

Units produced 1,100

Selling price per unit - $300

Direct labor - $15 per unit

Direct materials - $25 per unit

Variable manufacturing overhead - $10 per unit

Variable selling costs - $10 per unit

Fixed manufacturing overhead - $22,000

Fixed Selling & Administrative costs - $100,000

Required:

a. What is the product costs per unit under variable costing?

b. What is the product costs per unit under absorption costing?

c. Prepare the income statements - contribution format and multiple step under the two methods