Absorption and variable Costing Income Statement

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


Beginning inventory 0 
Units produced 28,600 
Units sold 27,300 

Sales price per unit $ 495 
Selling and administrative expenses: 
Variable per unit $ 23 
Fixed (total) $ 382,200 
Manufacturing costs: 
Direct materials cost per unit $ 279 
Direct labor cost per unit $ 52 
Variable manufacturing overhead cost per unit $ 36 
Fixed manufacturing overhead $ 629,200 

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
$ 





$ 


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
$ 
Variable expenses: 
$ 



Fixed expenses: 



$ 


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 $ 
: 

Net operating income under absorption costing $