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Whitman Company has just completed its first year of operations. The company's absorption costing Income statement for the year follows Whitman Company Income Statement Sales

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Whitman Company has just completed its first year of operations. The company's absorption costing Income statement for the year follows Whitman Company Income Statement Sales (41,000 units $44.10 per unit) Cost of goods sold (41,000 units x 525 per unit) Cross margin Selling and administrative expenses Net operating income $1,800, 100 1,025,000 783, 100 512,500 $ 270,600 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $25 unit product cost given above is computed as follows: $11 Direct materials Direct labor Variable manufacturing overhead Fixed Danutacturing overhead ($282,000 47,000 units) Absorption conting unit product cont 6 925 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 varioble 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 0 0 0 $ 0 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 inco income on the absorption costing income statement above. 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 state income on the absorption costing income statement above. (Enter any losses or deductions as a Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Absorption costing net operating income

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