Problem

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

Selling Price ................................. $155

Units in beginning inventory ..............100

Units Produced .............................4,500

Units Sold ....................................4,300

Units in Ending Inventory .................300

Variables costs per unit

Direct material .................................$28

Direct labor .....................................$49

Variable manufacturing overhead ........$7

Fixed selling and administrative ..........$81700

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required

a. What is the unit product cost for the month under variable costing?

b. Prepare an income statement for the month using the variable costing method.

c. Without preparing an income statement, determine the absorption costing net operating income for the month.