Packer Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	112
Units in beginning inventory		590
Units produced		2,000
Units sold		2,210
Units in ending inventory		380
Variable costs per unit:
Direct materials	$	28
Direct labor	$	25
Variable manufacturing overhead	$	2
Variable selling and administrative	$	20
Fixed costs:
Fixed manufacturing overhead	$	48,000
Fixed selling and administrative	$	6,630

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (Hint: Use the reconciliation method.)

Required:

a.	What is the unit product cost for the month under variable costing? (Omit the "$" sign in your response.)

	Cost per unit
Variable costing	$

b.	Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Variable Costing Income Statement
(Click to select)Manufacturing overheadContribution marginSalesNet operating income (loss)Selling and administrative expensesVariable cost of goods soldVariable selling and administrative expenses		$
Variable expenses:
(Click to select)Variable selling and administrative expensesManufacturing overheadNet operating incomeSalesContribution marginVariable cost of goods sold	$
(Click to select)Contribution marginVariable cost of goods soldManufacturing overheadNet operating incomeSalesVariable selling and administrative expenses
(Click to select)Contribution marginSalesVariable cost of goods soldManufacturing overheadVariable selling and administrative expensesNet operating income (loss)
Fixed expenses:
(Click to select)SalesNet operating incomeFixed selling and administrative expensesVariable cost of goods soldContribution marginFixed manufacturing overheadVariable selling and administrative expenses
(Click to select)SalesNet operating incomeVariable cost of goods soldVariable selling and administrative expensesFixed selling and administrative expensesFixed manufacturing overheadContribution margin
(Click to select)Variable selling and administrative expensesManufacturing overheadNet operating income (loss)Variable cost of goods soldSelling and administrative expensesContribution marginSales		$

c.	Without preparing an income statement, determine the absorption costing net operating income for the month. (Omit the "$" sign in your response.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income	$
(Click to select)DeductAdd: (Click to select)Fixed manufacturing overhead costs released from inventory under absorption costingFixed manufacturing overhead costs deferred in inventory under absorption costing
Absorption costing net operating income	$