The manufacturing and selling data for Abracadabra Inc. for the year 2018 is given below: -
- - - Selling price ..... $33 /unit
- - - Finished goods (beginning).............. 10710 units
- - - Production . 87230 units
- - - Sales .. 80400 units

Variable costs:
- - - Manufacturing ... $7 /unit
- - - Selling and administrative .. $3 /unit

Fixed costs:
- - - Manufacturing .. $311000 /year
- - - Selling and administrative $296000 /year

Assuming costs per unit were consistent over the years in both the costing methods, prepare the followings in the box below:
(a) Income statement using absorption costing.
(b) Income statement using variable costing.
(c) Reconciliation of net operating incomes