PA$17.$ LO $6\mathrm{.}5$ This information was collected for the first year of manufacturing for Appliance Apps:

Direct materials per unit

Direct labor per unit

Variable manufacturing overhead per unit

Variable selling and administration expenses $

Units produced

Units sold

Sales price

Fixed manufacturing expenses

Fixed selling and administration expenses

Requirements:

$1.)$ Prepare an income statement under variable costing.

$2.)$ Prepare an income statement under absorption costing.

$3.)$ Prepare a reconciliation to the income under the absorption method.