Problem 19-2A Varlable costing income statement and converslon to absorptlon costlng income LO P2, P3 Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows Sales (80,008 units $50 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,eee units x $30 per unit) Cost of good available for sale Ending inventory (20,eee x $30) Cost of goods sold Gross margin Selling and administrative expenses $4,eee,eee 3,000,e0e 3,0e0, eee 680,e00 2,480.00e 1,600,eee 560,e0e $1,840,eee Net income Additional Informatlon a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. b. The company's product cost of $30 per unit is computed as follows. Direct materials $ 4 per unit Direct labor $16 per unit Variable overhead 3 per unit $ 7 per unit Fixed overhead ($78e,eea 108,eee units) Requlred: 1. Prepare an income statement for the company under variable costing. Required: 1. Prepare an income statement for the company under variable costing. TREZ Company Variable Costing Income Statement Net income (loss)