I need help with this question. 3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2.

Book Managerial Accounting 14th edition by Garrison. Chapter 6 question 3.

3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2. Year 1 Variable costing net operating income (loss) 550,000 270,000 Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing S 820,000 S Absorption costing net operating income (loss) Year 2 790,000 180,000 970,000