Question 1 - Exercise 6-12* - Connect M Cost Classifications for Manufacturing Companies G how to calculate fixed manufacturing se 6-12* i Saved Help Save & Exit Check Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income St Sales (39,000 units x $41. 10 per unit) $ 1, 602, 900 Cost of goods sold (39, 000 units x $21 per unit) 819, 000 Gross margin 783, 900 Selling and administrative expenses 448, 500 ebook Net operating income $ 335, 400 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable Hint expenses. The $21 unit product cost given above is computed as follows: Direct materials $ 9 Direct labor Variable manufacturing overhead Print Fixed manufacturing overhead ($245, 000 + 49, 000 units) Absorption costing unit product cost $ 21 References Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement Mc FF N W 5 6 8 Q W E R T Y U O S D G H K 4 X C V B N M commaRequired 1 Required 2 Redo the company's income statement in the contribution format using variable costing. points Whitman Company Variable Costing Income Statement Sales $ 1,602,900 Variable expenses: Variable cost of goods sold $ 624,000 Variable selling and administrative 156,000 780,000 Contribution margin 322,900 Fixed expenses: O Fixed manufacturing overhead Fixed selling and administrative expense 0 Net operating income $ 822,900 Required 1 Required 2 > Mc Hill Q @ # % & 3 5 6 8 O Q W E R T Y U O A S D F G H K X C V B N MFixed manufacturing overhead ($245, 000 + 49,000 units), 5 Absorption costing unit product cost $ 21 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income