I completed the first section, but I still need the second section (blank). Can I please get the explanations along with the answer?

MEMOTEC, INC. Income Statement 1. 2b. Reconciliations: Variable costing net operating income (loss) Add (Deduct): Fixed manufacturing overhead cost deferred in inventory from Year 2 to Year 3 under absorption costing Add: Fixed manufacturing overhead cost $30,000$(110,000)$30,000 deferred in inventory from Year 3 to the future under absorption costing 200,000(200,000) 5b. Year 1 Year 2 Year 3 Unit Sales Sales Cost of goods sold: Cost of goods manufactured Add underapplied overhead Cost of goods sold: Gross margin Selling and administrative expenses Net operating income (loss) MEMOTEC, INC