27. Award 10.00 points Problems? Adjust credit for all students. Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 50,000 units, but its production was 80,000 units. It had no beginning finished goods inventory for the current period. DIAZ COMPANY Income Statement (Variable Costing) Sales (50,000 units * $60 per unit) $3.000,000 Variable expenses Variable manufacturing expense (50,000 units * $28 per unit) .40 0,000 Variable selling and admin. expense (50,000 unit: * $5 per unit) 250 000 Total variable expenses 1.650 000 Contribution margin 1.350,000 Fixed expenses Fixed overhead 320,000 Fixed selling and administrative expense 160 000 Total fixed expenses 430 000 Net Income $ 870,000 1. Convert Diaz's variable costing income statement to an absorption costing income statement. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Convert Diez's variable costing income statement to an absorption costing income statement Reculred 1 Required 2 DIAZ COMPANY Absorption Coating Income Statement Sales $ 3,000.000 Less: Cost of goods Bold Variable manufacturing costs 1,400,000 Fixed overhead costs 200,000 Cost of goods sold EL 1,600,000 Gross margin 1,400,000 Selling general and administrative expenses Fixed selling and administrative costs 160,000 Variable selling and administrative expenses 250,000 Total fixed expenses 10,000 Net Income (1068) 990,000 Explanation: 1. Sales (50,000 units * $80 per unit) = $3,000,000 Cost of goods sold (50,000 units * $32 per unit) = $1,600,000 Variable manufacturing expenses $ 28 per unit Fixed manufacturing expenses ($320,000/80,000 units) -4 per unit Total manufacturing cost per unit $ 32 per unit Selling and administrative expenses