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: Whitean Company Income Statement Sales (41,000 units * $42.60 per unit) $ 1,746,600 Cost of goods sold (41,000 units 524 per unit) 984,000 Grous margin 762,600 selling and administrative expenses 512,500 Net operating income $ 250,100 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $24 unit product cost given above is computed as follows: Direct materiais Direct labor Variable manufacturing overhead Tixed manufacturing overhead ($318,000 53,000 unita) Absorption costing unit product cost 5.24 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. 69 4 6 Complete this question by entering your answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconcle 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 Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income