Problems 1. During the most recent year, Pilkey Ltd had the following date associated with the product it makes: Units in beginning inventory Units produced 10,000 units 8,000 units Units sold ($300 per unit) Variable costs per unit: Direct materials $50 Direct labour $100 Variable overhead $50 Fixed costs: $25 Fixed manufacturing overhead per unit produced Fixed selling and administrative $100,000 Required: 1. Calculate the unit product cost using both absorption and variable costing. 2. Prepare an income statement using absorption costing. 3. Prepare an income statement using variable costing