please show each step of your work. I need help with this problem with explanation too

The Seiko Company manufactures trendy, high-quality, moderately priced watches. As Seiko's senior financial analyst, you are asked to recommend a method of inventory costing. The following ata are for the year ended December 31, 2018: Beginning inventory, January 1, 2018 Ending inventory, December 31, 2018 2018 sales Selling price (to distributor) Variable manufacturi 90,000 units o 433.000 units 24 10,392 ,o0o S24.00 per unit inluding $5.40 per unit Y 56,000 302,460 iec materilh Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs $1.20 per unit sold $1,852,200 6,300 60 units per machine-hour S1,130,000 Required Assume standard costs per unit are the same for units in beginning inventory and units produced during the year. Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold. Prepare income statements under variable and absorption costing for the year ended December 31, 2018. 1. 2. Explain the difference in operating income between the two methods