- Requirements 1. Compute the product cost per unit produced under absorption costing and under variable costing. 2. Prepare income statements for January 2020 using: a. absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in January? What causes the difference? Print Done Data Table January 2020 Units produced and sold: Sales 1,350 units Production 1,400 units 370 24 Variable manufacturing cost per unit Sales commission cost per unit Total fixed manufacturing overhead Total fixed selling and administrative costs 125,440 74,360 Print Done Phyllo Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted-average sales price per unit is $740 and the weighed-average variable cost per unit is $370. The company does not expect the sales mix to vary for the next year. Assume the beginning balance in Finished Goods Inventory is $0. Additional data for the first month of 2020: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per unit produced under absorption costing and under variable costing. Start by computing the product cost per unit produced under absorption costing. (Only complete the necessary input fields. If an input field is not used in the table leave the input field empty: do not select a label or enter a zero. Round all amounts to the nearest cent, X.XX.) Absorption Costing Variable manufacturing cost $ 370.00 Fixed manufacturing overhead 89.60 $ 459.60 Total unit product cost Now compute the product cost per unit produced under variable costing. (Only complete the necessary input fields. If an input field is not used in the table leave the input field empty; do not select a label or enter a zero. Round all amounts to the nearest cent, X.XX.) Variable Costing Variable manufacturing cost $ 370.00 Requirement 2a. Prepare the income statement for January 2020 using absorption costing. Phyllo Computer Company Income Statement (Absorption Costing) Month Ended January 2020 Net Sales Revenue $ 999,000 Cost of Goods Sold 620,460 Gross Profit 378,540 106,760 Selling and Administrative Costs $ 271,780 Operating Income Requirement 2b. Prepare the income statement for January 2020 using variable costing. Phyllo Computer Company Income Statement (Variable Costing) Month Ended January 2020 Net Sales Revenue $ 999,000 Variable Costs 499500 Contribution Margin Fixed Costs Requirement 2b. Prepare the income statement for January 2020 using variable costing. Phyllo Computer Company Income Statement (Variable Costing) Month Ended January 2020 Net Sales Revenue $ 999,000 Variable Costs Contribution Margin Fixed Costs Operating Income