Peterson Corporation produces a single product. The company had no beginning inventory and they produced 70,000 units during 2021 and sold 60,000 units. The operating data for 2021 follow:

Sales $1,380,000

Manufacturing costs:

Direct Materials 294,000

Direct Labor 182,000

Variable manufacturing overhead 273,000

Fixed manusfacturing overhead 150,500

Selling & Administrative expenses:

Fixed 140,000

Variable 258,000

Required:

C). Calculate the amount of net income under absorption coating

D). Explain in detail why the net income differs under the two accounting methods.