1. Audiophonirs timited manufactures and sells hightquality and durable ear buds for use with
personal electronics that are custom moulded to each customer's eat. Cost data for the product
follow The product sells for $60 per unit. Production and sales data for May and June, the first
two months of operations are as foliows: Income statements prepared by the Accounting
Department using absocption costing are presented below:
Income statements prepared by the Accounting Department using absorption costing are
presented below. Required: 1. Determine the unit product cost under each of the following
methods. 2. Prepare variable costing income statements for May and June using the contribution
approach. (Do nat ieove any empty spoces: input a 0 wherever it is required.)
2. Prepare variable costing income statements for May and June using the contribution approach.
(Do not leave ony empty spaces: input 00 wherever it is required.)
3. Reconcile the variable costing and absorption costing operating income figures (Loss omounts
should be indicated with a minus sign.) 4. This part of the question is not part of your Connect
assignment: