The vice-president for sales of Huber Corporation has received the following income statement for November, which was prepared on a variable-costing system. The firm has just adopted variable costing for its internal reporting.

HUBER CORPORATION Income Statement For the Month of November (in thousands)
Sales		$2,400
Less variable cost of goods sold		1,200
Contribution margin		1,200
Less fixed manufacturing costs at budget		600
Gross margin		600
Less fixed selling and administrative costs		400
Net income before taxes		$200

The controller attached the following notes with the statements:

1.		The unit sales price for November averaged $24.
2.		The unit manufacturing costs for the month were as follows:

Variable costs		$12
Fixed costs applied		4
Total cost		$16

3.		The unit rate for fixed manufacturing costs is a predetermined rate based on a monthly production of 150,000 units.
4.		The variable costs per unit have been stable all year.
5.		Production for November was 45,000 units in excess of sales.
6.		The inventory at November 30 was 80,000 units.

(a) The vice-president for sales is not comfortable with the variable-costing system and wonders what the net income would have been under the previous absorption-costing system. 1. Present the November income statement on an absorption-costing basis.

HUBER CORPORATION Absorption-Costing Income Statement November 30, 2020For the Month Ended November 30, 2020For the Year Ended November 30, 2020
Sales in units
SalesGross ProfitSelling and Administrative CostsCost of Goods SoldNet Income / (Loss)Net Income Before Overhead AdjustmentCost of Goods Available for SaleOperating ExpensesManufacturing OverheadOverhead AdjustmentCost of Goods ManufacturedContribution Margin		$
AddLess: Manufacturing OverheadContribution MarginNet Income / (Loss)Gross ProfitCost of Goods SoldCost of Goods Available for SaleOperating ExpensesSalesSelling and Administrative CostsOverhead AdjustmentNet Income Before Overhead AdjustmentCost of Goods Manufactured
Cost of Goods SoldNet Income Before Overhead AdjustmentOperating ExpensesCost of Goods ManufacturedSelling and Administrative CostsGross ProfitOverhead AdjustmentSalesCost of Goods Available for SaleManufacturing OverheadNet Income / (Loss)Contribution Margin
AddLess: Gross ProfitOverhead AdjustmentNet Income Before Overhead AdjustmentContribution MarginCost of Goods Available for SaleOperating ExpensesSalesSelling and Administrative CostsCost of Goods SoldCost of Goods ManufacturedManufacturing OverheadNet Income / (Loss)
Gross ProfitSelling and Administrative CostsNet Income / (Loss)Net Income Before Overhead AdjustmentCost of Goods ManufacturedCost of Goods Available for SaleCost of Goods SoldOverhead AdjustmentOperating ExpensesSalesContribution MarginManufacturing Overhead
AddLess: Selling and Administrative CostsSalesNet Income / (Loss)Overhead AdjustmentCost of Goods SoldNet Income Before Overhead AdjustmentOperating ExpensesCost of Goods Available for SaleGross ProfitManufacturing OverheadContribution MarginCost of Goods Manufactured
Cost of Goods SoldGross ProfitCost of Goods ManufacturedSalesCost of Goods Available for SaleOperating ExpensesSelling and Administrative CostsOverhead AdjustmentContribution MarginManufacturing OverheadNet Income / (Loss)Net Income Before Overhead Adjustment		$

2. Reconcile and explain the difference between the variable-costing and absorption-costing net income figures.

Variable-costing net income		$
FMOH deferred in ending inventory
FMOH released from beginning inventory
Absorption-costing net income		$