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Compute the product cost per game produced under absorption costing and under variable costing.

				October
				Absorption	Variable
				costing	costing
Total product cost per game
	November
	Absorption	Variable
	costing	costing

Requirement 2a. Prepare monthly income statements for

October

and

November,

including columns for each month and a total column, using absorption costing.

Game Source
Absorption Costing Income Statement
	October	November	Total
Operating Income

Requirement 2b. Prepare monthly income statements for

October

and

November,

including columns for each month and a total column, using variable costing.

Game Source
Variable Costing Income Statement
	October	November	Total
Operating Income

This is the data table for the question

Data Table

	October	November
Sales	2,000 units	3,000 units
Production	2,900 units	2,900 units
Variable manufacturing cost per game	$12	$12
Sales commission cost per game	3	3
Total fixed manufacturing overhead	14,500	14,500
Total fixed selling and administrative costs	8,500	8,500

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