Answer question #2 of 18.29 using the income statement format provided below. My textbook does not provide adequate steps to do this problem, so steps would be appreciated.

iling and administrative expenses There are no work-in-process inventories No t iti 100000 units. Expected and actu overhead costs are the same. Costs have not changed from one year to the next $234.000 $236.000 Required: 1. How many units are in ending inventory? Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is $29. Prepare an income statement using (a) variable cost ing and (b) absorption costing. or Problem 18.29 Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials 4.00 Direct labor S2.90 Variable overhead 1.50 Fixed costs per year. Overhead 180.000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it pro- duced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. Required: 1. Prepare income statements for both years using absorption costing. Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? 2. Prepare income statements for both years using variable costing. Has firm performance, as measured by income, improved or declined from Year I to Year 2? 3. Which method do you think most accurately measures firm performance? Why? Problem 18.30 Absorption and Variable-Costing Income Statements San Mateo Optics, Inc., specializes in manufacturing lenses for large telescopes and cameras used in space exploration. As the specifications for the lenses are determined by the customer and vary considerably, the company uses a job-order costing system. (continued) Variable Costing Income Statement For Years 1 and 2 Year 1 Sales $ 960,000 Less: Variable cost of goods sold Year 2 $ 1,080,000 Contribution margin Less: Fixed overhead 180,000 180.000 Fixed selling and administrative expenses Operating income Variable cost of goods sold: Beginning inventory 0 VS Variable cost of goods manufactured Goods available for sale Less: Ending inventory Cost of goods sold