Hi,

I have here an exercise.

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Exercise Question 110 7Arctic AC Company is a small manufacturer of window air conditioners. There were 65 units in beginning inventory. The units sell for $180 each. In 2017, the company produced 1,000 units and sold 940 units. Beginning inventory was zero. Below is the variable costing income statements for 2017: Arctic AC Company Variable Costing Income Statement For the Year Ending December 31, 2017 Sales $ 169,200 Less: variable costs: Variable cost of goods sold $26,320 Variable selling expense 12,220 38,540 Contribution margin 130,660 Less: xed costs: Fixed manufacturing expense 21,000 Fixed selling expense 6,580 Fixed administrative expense 4,700 32,280 Net income $ 98,380 How much net income will be reported under full costing? $ Reconcile the difference in profit between the two income amounts. Variable Costing Net Income $ Add: Fixed Costs Deferred in Inventory Full Costing Net Income $