Prepare the Income Statement of Annabelle Co. for the year ended Dec 31, 2020 under both the Absorption and Variable Costing Methods and prepare the reconciliation of net income figures.

Annabelle Co. sold 7,000 units at P 50 per unit in 2020. The inventories at the beginning and end of the same year were as follows: Jan. 1 Dec. 31 Number of units 4,000 3,000 Unit Costs: Direct Materials P 12 P 12 Direct Labor 10 10 Factory Overhead Variable 8 8 Fixed 7.20 9 Operating Expenses Variable 6 6 Fixed 3.20 4 Required: A. Determine the following: 1. The number of units produced in 2020 was 2. Total Fixed Factory Overhead was 3. The number of units produced in 2019 was B. Determine the following for the year ended December 31, 2020 under Variable Costing Full Costing 1. Product Unit Cost 2. Finished Goods Inventory, End 3. Total Fixed Costs 4. Total Variable costs and Expenses 5. Total Period Cost 6. Net Income