The EG Company

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 “$” sign in your response.)
b. Prepare an income statement for the year using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)
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 “$” sign in your response.)
d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. (Omit the “$” sign in your response.)