During 2020, Rafael Corp. produced 46,700 units and sold 42,030 for $15 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $84,060. Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,400. (a) Your answer is correct. Prepare an absorption-costing income statement. Sales Cost of goods sold Beginning inventory Add : Costs of goods manufactured Goods available for sale Less : Ending inventory Gross margin A Rafael Corp. Income Statement-Absorption Costing For the Year Ended December 31, 2020 Less Selling and administrative expenses Operating income before tax + $ i 270860 i 270860 i 630450 $ 27086 i 243774 $ 386676 103460 i 283216