HOW TO RECONCILE. STEP BY STEP

Fresh Air Products manufactures and sells a varietalr of camping products. lilecenlj'l:r the companyr opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the rst month of operations are shown below: Beginning in1urel1tor11lr [l units Units produced 11,2l] Units sold 9,900 Manufacturing costs Fixed overhead $123,200 Variable overhead $5 per unit Direct labour $1[II per unit Direct material $3l] per unit Selling and adminislralive costs Fixed $208,2 Uan'able $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement. Your answer is partially correct. Try again. Reconcile the difference in net income between the absorption-costing and variable-costing 282400 Variable costing operating income 58500 Fixed manufacturing overhead costs deferred in ending inventory 340900 Absorption costing operating income