Solve this based on the information provided. (if you use formulas, please let me know). Thanks!

e. Prepare a report in good form reconciling the variable costing and absorption costing net incomes. Year 1 Year 2 Fixed manufacturing overhead in ending inventory Fixed manufacturing overhead in beginning inventory Fixed manufacturing overhead deferred in (released from)inventories Year 1 Year 2 Variable costing net operating income Add fixed manufacturing overhead costs de ferred in inventory under absorption costing Deduct fixed manufacturing overhead costs released from inventory under absorption costing Absorption costing net operating income Rainbow Concrete Corporation has provided the following data for its two most recent years of operation: Selling price per unit $88 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year 16 12 8 396,000 8 124,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 0 18,000 12,000 6,000 Year 2 6,000 12,000 15,000 3,000 (a). Assume the company uses absorption costing. Compute the unit product cost in each year. Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Per Unit Per Unit Cost Year 1 16 12 8 22 58 Year 2 16 12 8 33 69 (b). Assume the company uses absorption costing. Prepare an income statement for each year. Sales Beginning Inventory Cost of goods manufactured Ending Inventory Cost of Goods Sold Gross Profit Variable Selling and Administrative Expense Fixed Selling and Administrative Expense Net Income Year 1 $1,056,000 $0 $1,044,000 $348,000 $696,000 360,000 96,000 124.000 140,000 Year 2 $1,320,000 $348,000 $828,000 $207,000 $969,000 351,000 120,000 124,000 107.000 c. Assume the company uses variable costing. Compute the unit product cost in each year. Year 1 Year 2 Direct Materials Direct Labor Variable Manufacturing Overhead Per unit cost as per absorbtion cost 16 12 8 36 S 16 12 8 36 S d. Assume the company uses variable costing. Prepare an income statement for each year. Sales Cost of Goods Sold Gross Profit Fixed Manufacturing Overhead Variable Selling and administrative expenses Fixed Selling and administrative expenses Net Income Year 1 $1,056,000 $432.000 624,000 396,000 96,000 124,000 8,000 Year 2 $1,320,000 $540,000 780,000 396,000 120,000 124,000 140,000