The EG Company Produces and Sells One Product: a Microwave

The EG Company produces and sells one product: a microwave oven.The following data refer to the year just completed:
$\begin{array}{|l|r|}\hline \text { Beginning inventory } & \$ 0 \\\hline \text { Units produced } & 25,000 \\\hline \text { Units sold } & 20,000 \\\hline \text { Sales price per unit } & \$ 400 \\\hline \text { Selling and administrative expenses: } & \\\hline \text { Variable per unit } & \$ 15 \\\hline \text { Fixed (total) } & \$ 275,000\\\hline \text { Manufacturing costs: } & \\\hline \text { Direct materials cost per unit } & \$ 200 \\\hline \text { Direct labour cost per unit } & \$ 50 \\\hline \text { Variable overhead cost per unit } & \$ 30 \\\hline \text { Fixed overhead (total) } & \$ 300,000\\\hline\end{array}$

Assume that direct labour is a variable cost.
Required:
a)Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.
b)Prepare an income statement for the year using absorption costing.
c)Prepare an income statement for the year using variable costing.
d)Reconcile the absorption costing and variable costing operating income figures in b)and c)above.