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The EG Company produces and sells single product. The following data refer to the year just completed:

Beginning inventory		0
Units produced		26,800
Units sold		25,800
Selling price per unit	$	418
Selling and administrative expenses:
Variable per unit	$	18
Fixed (total)	$	335,400
Manufacturing costs:
Direct materials cost per unit	$	231
Direct labor cost per unit	$	52
Variable manufacturing overhead cost per unit	$	39
Fixed manufacturing overhead (total)	$	348,400

Assume that direct labor is a variable cost.

Required:

a.	Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. (Omit the "$" sign in your response.)

	Cost per unit
Absorption costing	$
Variable costing	$

b.	Prepare an income statement for the year 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)SalesSelling and administrative expensesCost of goods soldGross marginNet operating income (loss)	$
(Click to select)Selling and administrative expensesSalesGross marginNet operating income (loss)Cost of goods sold
(Click to select)Net operating income (loss)Selling and administrative expensesCost of goods soldSalesGross margin
(Click to select)Cost of goods soldGross marginNet operating income (loss)SalesSelling and administrative expenses
(Click to select)Cost of goods soldSalesNet operating income (loss)Selling and administrative expensesGross margin	$

c.	Prepare a contribution format income statement for the year 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)Contribution marginManufacturing overheadSalesNet operating income (loss)Selling and administrative expensesVariable cost of goods soldVariable selling and administrative expenses		$
Variable expenses:
(Click to select)Variable selling and administrative expensesContribution marginFixed selling and administrative expensesSalesVariable cost of goods soldNet operating incomeFixed manufacturing overhead	$
(Click to select)Variable selling and administrative expensesNet operating incomeSalesFixed manufacturing overheadContribution marginFixed selling and administrative expensesVariable cost of goods sold
(Click to select)Variable cost of goods soldVariable selling and administrative expensesContribution marginNet operating income (loss)Selling and administrative expensesSalesManufacturing overhead
Fixed expenses:
(Click to select)Fixed manufacturing overheadFixed selling and administrative expensesNet operating incomeVariable selling and administrative expensesContribution marginVariable cost of goods soldSales
(Click to select)Variable selling and administrative expensesSalesContribution marginVariable cost of goods soldNet operating incomeFixed manufacturing overheadFixed selling and administrative expenses
(Click to select)Contribution marginSelling and administrative expensesVariable cost of goods soldManufacturing overheadVariable selling and administrative expensesNet operating income (loss)Sales		$

d.	Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. (Omit the "$" sign in your response.)

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

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