Below is the variable costing income statement for South Bend Co.

Sales, 6,000 units $210,000

Total variable costs:

Beg. inventory, 680 units $13,600

Variable manufacturing cost of

goods manufactured, ? units + 132,000

Ending inventory, 1,280 units - (25,600)

Variable manufacturing cost of goods $120,000

Variable selling & admin. exp. + 24,900 ($144,900)

Contribution margin $65,100

Total fixed costs:

Fixed factory overhead $19,800

Fixed selling and admin. expenses + 15,300 ($35,100)

Operating income $30,000

REQUIRED:

1. Prepare an absorption-costing income statement.
2. Reconcile the difference in income.