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Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	198
Units in beginning inventory		0
Units produced		3,230
Units sold		3,060
Units in ending inventory		170
Variable costs per unit:
Direct materials	$	55
Direct labor	$	55
Variable manufacturing overhead	$	14
Variable selling and administrative	$	13
Fixed costs:
Fixed manufacturing overhead	$	109,820
Fixed selling and administrative	$	12,240

Required:

a.	What is the unit product cost for the month under variable costing? (Do not round intermediate calculations. Omit the "$" sign in your response.)

	Cost per unit
Variable costing	$

b.	What is the unit product cost for the month under absorption costing? (Omit the "$" sign in your response.)

	Cost per unit
Absorption costing	$

c.	Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Variable Costing Income Statement
(Click to select)Variable cost of goods soldSalesNet operating income (loss)Selling and administrative expensesVariable selling and administrative expensesManufacturing overheadContribution margin		$
Variable expenses:
(Click to select)Variable cost of goods soldDirect laborSalesDirect materialsVariable selling and administrative expensesNet operating incomeContribution margin	$
(Click to select)Variable cost of goods soldDirect materialsSalesContribution marginDirect laborVariable selling and administrative expensesNet operating income
(Click to select)Variable cost of goods soldSelling and administrative expensesNet operating income (loss)Contribution marginVariable selling and administrative expensesManufacturing overheadSales
Fixed expenses:
(Click to select)SalesFixed manufacturing overheadContribution marginVariable cost of goods soldFixed selling and administrative expensesNet operating incomeVariable selling and administrative expenses
(Click to select)Fixed manufacturing overheadSalesFixed selling and administrative expensesVariable cost of goods soldVariable selling and administrative expensesNet operating incomeContribution margin
(Click to select)Selling and administrative expensesContribution marginVariable cost of goods soldSalesNet operating income (loss)Manufacturing overheadVariable selling and administrative expenses		$

d.	Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Absorption Costing Income Statement
(Click to select)Net operating income (loss)Gross marginSalesCost of goods soldFixed selling and administrative expensesVariable selling and administrative expenses		$
(Click to select)Cost of goods soldNet operating income (loss)SalesVariable selling and administrative expensesFixed selling and administrative expensesGross margin
(Click to select)Variable selling and administrative expensesSalesNet operating income (loss)Gross marginCost of goods soldFixed selling and administrative expenses
Selling and administrative expenses:
(Click to select)Fixed selling and administrative expensesNet operating income (loss)Cost of goods soldGross marginVariable selling and administrative expensesSales	$
(Click to select)SalesNet operating income (loss)Fixed selling and administrative expensesCost of goods soldVariable selling and administrative expensesGross margin
(Click to select)Gross marginSalesCost of goods soldFixed selling and administrative expensesNet operating income (loss)Variable selling and administrative expenses		$

e.	Reconcile the variable costing and absorption costing net operating incomes for the month. (Omit the "$" sign in your response.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income	$
(Click to select)AddDeduct: (Click to select)Fixed manufacturing overhead costs released from inventory under absorption costingFixed manufacturing overhead costs deferred in inventory under absorption costing
Absorption costing net operating income	$

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