Maher Corporation, which has only one product, has provided thefollowing data concerning its most recent month of operations:Selling price $ 157 Units in beginning inventory 0 Units produced3,710 Units sold 3,490 Units in ending inventory 220 Variable costsper unit: Direct materials $ 47 Direct labor $ 50 Variablemanufacturing overhead $ 9 Variable selling and administrativeexpense $ 11 Fixed costs: Fixed manufacturing overhead $ 118,720Fixed selling and administrative $ 10,470 Required: a. What is theunit product cost for the month under variable costing? b. What isthe unit product cost for the month under absorption costing? c.Prepare a contribution format income statement for the month usingvariable costing. d. Prepare an income statement for the monthusing absorption costing. e. Reconcile the variable costing andabsorption costing net operating incomes for the month.
