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es Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) Units produced Units sold Required: 1. Compute the unit product cost under each of the following costing method. a. Absorption costing b. Variable costing Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $508 each. During the first month of operations, the following activity was recorded: Cost of goods sold 5,385 4,130 Required: 1. Compute the unit product cost under each of the following costing method. Unit Product Cost Variable expenses: Variable cost of goods sold Fixed expenses $ $ 14+ 173 20 $694,665 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 3. Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 10% of sales $387,720 Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above.

Zurgot inc has just organized a new division to manufacture and sel specialy designed computer kibles, usmg select hurdwoodi, The division's monthly costs are shown in the schedule below: Zungot regards all of its viokers as tultime employces, and the compeny has a long-standing no bepotf polioy furthemere, production is highly automated. Accordingly, the company includes is labour costs in iss fied inasufactiriog overtheod. The tablic: sall for $50B each. Diang the first month of aperations, the following activity was recorded: Required Recuined 5. Reconcle the abaorption costing and variable costing operating income figures in (2) and (B) above

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