00 Exercise 6-12 (Algo) Variable Costing Income Statement; Reconciliation (LO6-2, L06-3) 2.5 points Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: eBook Whitman Company Income Statement Sales (40,000 units $42.10 per unit) Cost of goods sold (40,000 units $25 per unit) Gross margin Selling and administrative expenses Niet operating income $1,684,000 1,000,000 684,000 500,000 $ 184,000 Hint The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $5 per unit sold in variable expenses. The $25 unit product cost given above is computed as follows: Print 3.11 Heferences Direct naterials Direct labor Variable manufacturing overhead Tixed manufacturing overhead ($330,000 + 55,000 unita) Absorption conting unit product cont $ 25 Required: 1. Redo the company's income statement in the contribution format using variable costing 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above Complete this question by entering your answers in the tabs below. Required 1 Required 2 00 Required: 1. Redo the company's income statement in the contribution format using variable costing 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. 2.5 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Hint Redo the company's income statement in the contribution format using variable costing. Print Whitman Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling and administrative References 0 0 0 $ 0 Road 00 Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($330,000 + 55,000 units) Absorption conting unit product cont $ 11 4 4 6 $ 25 2.5 points Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above, eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Print Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.) References Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Absorption costing net operating income