Your answer is partially correct. Try again.

Reconcile the difference in net income between the absorption-costing and normal-costing methods. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places.)

Normal costing net income		$
Costs deferred in ending inventory
Absorption costing net income		$

Question 4 Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2020 are as follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Selling price Units produced Units sold $40 per shade $98,800 $9 per shade $250,100 $97 per shade 10,400 shades 8,640 shades (a) Your answer is correct. Assume the company uses normal costing and uses the budgeted volume of 9,500 units to allocate the fixed overhead rate rather than the actual production volume of 10,400 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost 50.40 per unit 2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places.) ASIAN WINDOWS Income Statement-Normal Costing For the Year Ended December 31, 2020 Sales 838080 Cost of goods sold Beginning inventory Add | Costs of goods manufactured 524160 Goods available for sale 524160 Less Ending inventory 88704 Cost of goods sold 435456 Less Volume variance 9360 426096 1 Gross margin 411984 Less 1. Selling and administrative expenses 327860 1 Net income 84124 v (b) Your answer is partially correct. Try again. Reconcile the difference in net income between the absorption-costing and normal-costing methods. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to O decimal places.) Normal costing net income 84124 Costs deferred in ending inventory 1x Absorption costing net income $