1 Sunshine Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $120 Units in beginning inventory 100 Units produced 3,900 Units sold 3,600 Units in ending inventory 400 Variable costs per unit: Direct materials $31 Direct labor $54 Variable manufacturing overhead $5 Variable selling and administrative $8 Fixed costs: Fixed manufacturing overhead $54,600 Fixed selling and administrative $21,600 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:

d. Prepare an income statement for the month using the absorption costing method.

e. Reconcile the variable costing and absorption costing net operating incomes for the month.