During 2020, Rafael Corp. produced 45,100 units and sold 36,080 for $14 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $72,160. Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,900. (a) 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 $ 505120 Cost of goods sold V: Beginning inventory $ 0 Add : Costs of goods manufactured 252560 Goods available for sale 252560 Less : Ending inventory 126280 126280 Gross margin Less Selling and administrative expenses 19900 Operating income before tax $ (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