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Denton Company manufactures and sells a single product. Cost data for the product are given:

Variable costs per unit:
Direct materials	$ 6
Direct labor	11
Variable manufacturing overhead	3
Variable selling and administrative	3
Total variable cost per unit	$ 23
Fixed costs per month:
Fixed manufacturing overhead	$ 126,000
Fixed selling and administrative	166,000
Total fixed cost per month	$ 292,000

The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow:

	Units Produced	Units Sold
July	21,000	17,000
August	21,000	25,000

The companys Accounting Department has prepared the following absorption costing income statements for July and August:

	July	August
Sales	$ 816,000	$ 1,200,000
Cost of goods sold	442,000	650,000
Gross margin	374,000	550,000
Selling and administrative expenses	217,000	241,000
Net operating income	$ 157,000	$ 309,000

Required:

1. Determine the unit product cost under:

a. Absorption costing.

b. Variable costing.

2. Prepare variable costing income statements for July and August.

3. Reconcile the variable costing and absorption costing net operating incomes.

Denton Company manufactures and sells a single product. Cost data for the product are glven: The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow: The company's Accounting Department has prepared the following absorption costing income statements for July and August Required: 1. Determine the unit product cost under: a. Absorption costing. b. Varlable costing. 2. Prepare varlable costing income statements for July and August. 3. Reconcile the varlable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Complete this question by entering your answers in the tabs below. Prepare variable costing income statements for July and August. Complete this question by entering your answers in the tabs below. Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.)

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