I need help in part C

AFN Company produces plastic that is used for injection-moulding applications such as gears for small motors. In 2020, the first year of operations, AFN Company produced 5,000 tonnes of plastic and sold 3,550 tonnes. In 2021, the production and sales results were exactly reversed. In each year, the selling price per tonne was $1,900; variable manufacturing costs were 16% of the sales price for the units produced; variable selling expenses were 9% of the selling price of the units sold; fixed manufacturing costs were $3,550,000; and fixed administrative expenses were $600,000.

Prepare comparative income statements for each year using variable costing. (Use the format from 1 AFN COMPANY Income Statement-Variable Costing For the Years Ended December 31 2020 2021 Number of units manufactured 5000 3550 V Number of units sold 3550 5000 V Sales 6745000 9500000 Less Variable costs v V V Inventory, beginning 440800 Add Costs of goods manufactured 1520000 1079200 Cost of goods available for sale 1520000 1520000 V V Less Inventory, ending 440800 v Variable cost of goods sold 1079200 1520000 Variable selling and administrative costs + 607050 855000 Total variable costs + 1686250 2375000 Contribution margin 5058750 7125000 V V Less Fixed costs 4150000 4150000 V Net income 908750 $l 2975000(b) Your answer is correct. Prepare comparative income statements for each year using absorption costing. (Use the format from Illustration 8.4.) AFN COMPANY Income Statement-Absorption Costing For the Years Ended December 31 4 2020 2021 Number of units produced 5000 3550 V V Number of units sold 3550 5000 Sales 6745000 9500000 Less Cost of goods sold V V Inventory, beginning 1470300 Add Costs of goods manufactured 5070000 4629200 Cost of goods available for sale 5070000 6099500 Less Inventory, ending 1470300 Cost of goods sold 3599700 6099500 LV Gross margin 3145300 3400500 Less Selling and administrative expenses + 1207050 1455000 Net income 1938250 1945500(c) Reconcile the differences in the income from operations each year under the two costing approaches. Reconciliation, 2020 Variable-costing net income $ Fixed MOH deferred in ending inventory Absorption-costing net income $ Reconciliation, 2021 Variable-costing net income $ Fixed MOH released from beginning inventory Absorption-costing net income