2. Goofy Company's absorption costing income statements for the last two years are presented below: Year 1 Year 2 Sales... $70,000 $90.000 Less cost of goods sold: Beginning inventory. 0 6,000 Add cost of goods manufactured. 48,000 48,000 Goods available for sale. 48,000 54,000 Less ending inventory 6.000 0 Cost of goods sold. 42,000 54,000 Gross margin 28,000 36,000 Less selling & admin. expenses 25.000 31.000 Net operating income $ 3,000 $ 5,000 Data on units produced and sold in each of these years are given below: Units in beginning inventory. Units produced Units sold.... Year 1 Year 2 0 1,000 8,000 8,000 7,000 9,000 Fixed factory overhead totaled $16,000 in each year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold. Required: 3. a. Compute the unit product cost in each year under variable costing. b. Prepare new income statements for each year using variable costing. c. Reconcile the absorption costing and variable costing net operating income for each year. Vincenzo Cassano Inc. produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory. Units produced Units sold... Units in Finding Inventory 0 2,000 1,900 Selling price per unit. 100 $100 Variable costs per unit: Direct materials $30 Direct labor... $10 Variable manufacturing overhead. $5 Variable selling and administrative. $2 Fixed costs in total: Fixed manufacturing overhead. $40,000 Fixed selling and administrative $60,000 Required: a. Compute the unit product cost under both absorption and variable costing. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.