1) Borunda Corporation has provided the following data for its two most recent years of operation: Selling price per unit- $834 $7 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labore Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year $3/ $360,000 $6 $77,000 |Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 14 Year 2014 o 2,000 10,000 12,000 8,000 12.000 2,000 2,000 Required: a. Assume the company uses absorption costing. Prepare an income statement for each year.' b. Assume the company uses variable costing. Prepare an income statement for each year. c. Prepare a report in good form reconciling the variable costing and absorption costing net incomes