NewConnect.mneducation.com/flow/connect.html 6(2) Help Save & Exit Check Problem 6-22 Variable Costing Income Statements; Income Reconciliation [LO6-1, LO6-2, LO6-3]. Denton Company manufactures and sells a single product. Cost data for the product are given: 1 5 12 2 2 3 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month int 150,000 169.000 319,000 ances The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow. July August Units Produced 30,000 30,000 Units Sold 26,000 34.000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July $ Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $1,300,000 624, eee 676,000 2 47, $ 429,000 August 1,700,000 16.000 884,000 271,000 613.000 S $ Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. July August Produced 30,000 30,000 Sold 26,000 34,000 The company's Accounting Department has prepared the following absorption costing statements for July and August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $1,300,000 624,000 676,000 247,000 $ 429,000 August $1,700,000 816,000 884,000 271, eee 613,000 Required: 1. Determine the unit product cost under a. Absorption costing. b. Variable costing. 12. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing, Unit Product Cost a. Absorption costing b. Variable costing Required 2 >