# 4: (10 marks) During 2022, Lakefield Corp. produced 45,000 units and sold 27,000 for $14.00 per unit. Variable manufacturing costs were $4.00 per unit. Annual fixed manufacturing overhead was $54,000. Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $18,000. a. Prepare the income statement under variable costing (with the proper headings, order and labels). b. Reconcile the difference between the net income under variable costing and the net income under absorption costing (show a calculation that explains what causes the difference). Example of the reconciliation format Variable costing operating income Fixed Manufacturing overhead cost (deferred? Released?) in ending inventory $ $ Absorption costing operating income $ a. *** You are required to upload on Blackboard your step-by-step calculation. Uploading just the final answer will not be graded! Electronic files will not be accepted. Messy work will not be graded. Remember, this is a final exam. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans,sa... v 10pt A Ix * Q Q = = = 88