During Durton Company's first two years of operations, the company reported variable costing operating income as shown below. Toduction and cost data for the two years are given: The company's $20 unit product cost is computed as follows: Required: 1. Prepare an absorption costing income statement for each year. 2. Reconcile the absorption costing and variable costing operating income figures for each year. (Loss amounts should be indicated by a minus sign.)