31059 279531 Less Ending inventory 341649 Gross margin 107540 Les Selling and administrative expenses 234109 Operating income before tak e Textbook and Media Attempts: 1 of 3 used Submit Answer Save forster (b) Reconcile the difference between the net income under variable costing and the net income under absorption costing. That is. show a calculation that explains what causes the difference in net income between the two approaches. Variable costing net income Fixed manufacturing overhead costs deferred in ending inventory $ Absorption costing operating income During 2020, Rafael Corp, produced 49,300 units and sold 44,370 for $14 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $88,740. Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $18,800. Your answer is partially correct. Prepare an absorption costing income statement. Rafael Corp. Income Statement-Absorption Costing For the Year Ended December 31, 2020 Sales $ 621180 Cost of woods sold Beginning inventory 0 Add costs of goods manufactured 310590 Goods available for sale 310590 less u Ending inventory 31059 279531 Gross margin 341649 Less Selling and administrative expenses 107540