(need help with this problem)!

Problem 3: The PEG Company produces and sells one product. The following data refer to the first year just completed: Selling price Units in beginning inventory.. Units produced. Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Manufacturing overhead Selling and administrative Fixed costs: Manufacturing overhead. Selling and administrative ***********eer $135 0 1,900 1,500 400 $23 $52 $4 $10 $38,000 $27,000 Required: A. Compute the product cost of a single unit under the absorption costing and variable costing (contribution margin). B. Prepare an income statement for the year using absorption costing. C. Prepare a contribution format income statement for the year using variable costing. D. Why is there a difference between the net operating income from absorption costing and variable costing? 129445-15 05/09 12. 25 A 5004163

Problem 3: The PEG Company produces and sells one product. The following data refer to the first year just completed: Required: A. Compute the product cost of a single unit under the absorption cesting and rariable costing (contribution margin). B. Prepare an income statement for the year using absorption costing. C. Prepare a contribution format income statement for the year uring variable costing. D. Why is there a difference between the net operating income fom absorption costing and variable costing? Problem 3: The PEG Company produces and sells one product. The following data refer to the first year just completed: Required: A. Compute the product cost of a single unit under the absorption cesting and rariable costing (contribution margin). B. Prepare an income statement for the year using absorption costing. C. Prepare a contribution format income statement for the year uring variable costing. D. Why is there a difference between the net operating income fom absorption costing and variable costing