Problem

Lincoln Company, which has only one product, has provided the following data concerning its most recent month of operations.

Selling price $125

Units in beginning inventory 600

Units produced 3,000

Units sold 3,500

Units in ending inventory 100

Variable costs per unit:

Direct materials $27

Direct labor $18

Variable manufacturing overhead $10

Variable selling and admin $12

Fixed costs:

Fixed manufacturing overhead $75,000

Fixed selling and admin $30,000

Required:

What is the unit product cost for the month under variable costing?
What is the unit product cost for the month under absorption costing?
Prepare an income statement for the month using the variable costing method.
Prepare an income statement for the month using the absorption costing method.