Raine Company manufactures a professional grade vacuum cleaner and began its operation in 2019. For 2020, the company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows: Units produced- 18,000; units sold-18,500; Unit Selling Price - P280;Materials - P30; Manufacturing Labor - P25; Manufacturing Overhead - P50; Variable Marketing and Admin Expense -P45; Fixed Manufacturing Cost- P900,000; Fixed Selling and Administration Expense - P750,000.

Requirements:

1. Compute the inventoriable unit cost for internal and external reporting purposes
2. Compute the operating income for 2020 under variable and absorption costing.
3. Provide a reconciliation in income under the two costing methods.