PA14. LO 6.5 Summarized data for Walrus Co. for its first year of operations are $5,000,000 1,800,000 1,500,000 Sales (100,000 units) Production costs (120,000 units) Direct material Direct labor Manufacturing overhead Variable Fixed Selling and administrative expenses Variable Fixed 900,000 300,000 260,000 440,000 A Prepare an income statement under absorption costing B. Prepare an income statement under variable costing PA15 LO 6.5 Happy Trails has this information for its manufacturing Direct Materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Units produced Units sold $ 3 $25 27.000 19,000 Its income statement under absorption costing is $1,900,500 Sales Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale - Ending Inventory Cost of Goods Sold Gross Profit - Sales and Administration Expenses Variable Fixed Total Sales and Administration Expenses Net Operating Income 1,566,000 1,566,000 464,000 1,102,000 798,500 133,000 300,000 433,000 365,500 $ Prepare an income statement with variable costing and a reconciliation statement between both methods