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  3. (20 points) stetson company, which has only one pr

(20 POINTS) Stetson Company, which has only one product, has provided the following data concerning...

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Accounting

(20 POINTS) Stetson Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $122
Units in beginning inventory 0
Units produced 8,300
Units sold 8,200
Units in ending inventory 100
Variable costs per unit:
Direct materials $27
Direct labour $46
Variable manufacturing overhead $4
Variable selling and administrative $7
Fixed costs:
Fixed manufacturing overhead $199,200
Fixed selling and administrative $106,600

Required: a) What is the unit product cost for the month under variable costing? 3 POINTS b) What is the unit product cost for the month under absorption costing? 3 POINTS c) Prepare an income statement for the month using the contribution format and the variable costing method. 6 POINTS d) Prepare an income statement for the month using the absorption costing method. 6 POINTS e) Reconcile the variable costing and absorption costing operating incomes for the month. 2 POINTS

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