Exercise 6-12 (Algo) Variable Costing Income Statement; Reconciliation (LO6-2, LO6-3] Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (39,000 units * $44.60 per unit) Cost of goods sold X39,000 units X 523 per unit) Gross margin Selling and administrative expenses Het operating Income $1,739,400 897,000 842,400 448,500 $393,900 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expehses. The $23 unit product cost given above is computed as follows: $ 10 Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($270,000 45,000 units) Absorption conting unit product cont 3 6 $.23 Required: Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating Income on the absorption costing income statement above. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's Income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales 1,739,400 Variable expenses Variable cost of goods sold Variable selling and administrative $ 741,000 $ 156.000 897 ann Required Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold $ 741,000 Variable selling and administrative 156,000 1,739,400 897,000 842,400 Contribution margin Fixed manufacturing overhead Fixed selling and administrative expense 270,000 292,500 562,500 $ 279,900 Net operating income Required 1 Required 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income $ 279,900 45,000 Absorption costing net operating income $ 324,900