req1, req2, req3

3 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: 10 points Variable costs per unit: Direct materials Direct labor Variable manufacturing Skippe overhead administrative unit Variable selling and eBook 1 Total variable cost per $ 21 Print Fixed costs per month: Fixed manufacturing Fixed selling and Total fixed cost per month $298,000 $135,000 overhead Reference 163,000 administrative The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July 27,000 23,000 August 27,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales Cost of goods sold Gross margin selling and administrative expenses Net operating income 435,000 643,000 $1,196,000 $1,612,000 575,000 775,000 837,000 194,000 621,000 186,000 Required 1. Determine the unit product cost under: a. Absorption costing b. Variable costing. 2. Prepare contribution format 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. Reauired |ReauiredE Reauired