Whitman Company hasjust completed its first year of operations. The company's absorption costing income statement for the year follows: thitrlan Company Income Statement Sales (33,660 units a: $43.56 per unit) $ 1,656,300 Cost of goods sold (38,660 units a: $26 per unit] 983,600 Gross margin 663,300 Selling and administrative expenses 475,303 Net operating income 5 193,800 The company's selling and administrative expenses consist of $285,000 per year in xed expenses and $5 per unit sold in variable expenses. The $26 unit product cost given above is computed as follows: Direct materials $ 12 Direct labor 5 Variable manufacturing overhead 4 Fixed manufacturing overhead ($275,666 + 55,600 units) 5 Absorption costing unit product cost $ 25 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. Complete this question by entering your answers in the labs below. Required 1 Required 2 Redo the company's inoome statement in the contribution format using variable ousting. 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. Complete this question by entering your answers in the labs below. Required 1 Required 2 Redo the company's inoome statement in the contribution format using variable oosting. Required 2 > 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. Complete this question by entering your answers in the labs below. Required 1 Required 2 Redo the company's inoome statement in the contribution format using variable ousting. Administrative expenses Advertising Beginning merchandise inventory Commissions Depreciation Required 2 > 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. 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 E.... Depreciation Ending merchandise inventory Fixed manufacturing overhead Fixed selling and administrative expense Indirect labor 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. Complete this question by entering your answers in the labs heluw. Required 1 Required 2 Redo the company's inoome statement in the contribution format using variable ousting. Indirect materials Purchases Sales Variable cost of goods sold Variable selling and administrative Required 2 > Net operating income $ 193,803 The company's selling and administrative expenses consist of $285,000 per year in xed expenses and $5 per unit sold in variable expenses. The $26 unit product cost given above is computed as follows: Direct materials $ 12 Direct labor 5 Variable manufacturing overhead 4 Fixed manufacturing overhead ($2?5,883 + 55,303 units) 5 Absorption costing unit product cost $ 25 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. Complete this question by entering your answers in the labs below. Required 1 Required 2 Reconcile any difference between the net operating income on your variable costing income statement and the net opelating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.) Variable costing net operating income Absorption costing not operating income ( Required1 i-let operating income $ 193,339 The company's selling and administrative expenses consist of $285,000 per year in xed expenses and $5 per unit sold in variable expenses. The $26 unit product cost given above is computed as follows: Direct materials $ 12 Direct labor 5 Variable manufacturing overhead 4 Fixed manufacturing overhead {$276,000 + 55,666 units) 5 Absorption costing unit product cost $ 25 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. 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 statement and the net operating income on the absorption costing income statement above. (Enter anv losses or deductions as a negative value.) Reconciliation of Variable Cooling and Absorption Cooling Net Operating Income: Variable costing net operating income Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Add: Fixed manufacturing overhead cost released from inventory under absorption costing Deduct: Fixed manufacturing overhead cost deferred in inventorv under absorption costing Deduct: Fixed manufacturing overhead cost released from inventorv under absorption costing