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 (42,eee units X $41.60 per unit) Cost of goods sold (42,000 units x $24 per unit) Gross margin Selling and administrative expenses Net operating income $1,747,200 1, e88, eee 739,200 483,000 $ 256,200 The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $24 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($240, eee 48, eee units) Absorption costing unit product cost 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. Redo the company's income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement Sales Variable expenses: Options for the blanks Administrative expenses Advertising Beginning merchandise inventory Commissions Ending merchandise inventory Fixed manufacturing overhead Fixed selling and administrative expenses Indirect labor Indirect materials Purchases Sales Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: Net operating income $ 0 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 Absorption costing net operatin income Required 1 Required 2 > Option for blank] Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Add: Fixed manufacturing overhead cost released from inventory under absorption costing Less: Fixed manufacturing overhead cost deferred in inventory under absorption costing Less: Fixed manufacturing overhead cost released from inventory under absorption costing