King Industries has one product. Infomation about the production and sales of that product for the past year folow. con to vieu the data) #Clak the The company had no beginning inventory. Read the requirements. Requirement 1. Prepare tuo income statements for the year, one using absorption costing and one using variable costing Begin by preparing the income statement the year using absorption costing. King Industries Income Statement (Absorption Costing) For the Year Ended Less: Data Table Less Selling price per unit 51.00 Nou prepare the income statement for the year using variable costing. Direct material per unit 20.00 ing Industries Direot labor per.unit. 12.00 Contribution Marg Total annual manufacturing overbead me statement (Variable Costing) 171,000 Fixed portion of annual manufacturing overhead. 152,000 driable operating expenses per unit sold Less: ..... ses per year i Units manufactured 19.000 Units sold. 18.000 Less Print Done Use the statements you prepared to answer the follouing questions: 1a. What is the product cost per unit using absorption costing? 1b. What is the produot cost per unit using variable costing? 1c is the ending inventory balance using absorption costing? $ 1d. What is the ending inventory balance using variable costing? s cost of goods sold using absorption costing? . 1g. What operating income using absorption costing? 1h. What operating income using variable costing? Requirement 2. What is the undertying reason for the difference in operating income betueen the tuo costing methods? costing generates a higher operating income. This is because under absorption costing, uhereas variable costing T