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Exercises Questions Question 5.1 (Total: 40 marks) Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price $105 Units in beginning inventory 110 Units produced 6,400 Units sold 6,100 Units in ending Inventory 410 Variable costs per unit: Direct materials $62 Direct labour $48 Variable manufacturing overhead $3 Variable selling and administrative $7 Fixed costs: Fixed manufacturing overhead $64,000 Fixed selling and administrative $35,600 Submission Instructions: 1. Under variable costing, identify the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and variable costing method. 4. Prepare an income statement for the month using the absorption costing meth