Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all-season use. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the data for their swim spa business in years 1, 2, and 3 shown below. The company's fixed manufacturing overhead per unit was constant at $2,900 for all three years: Year 2 Inventories: Beginning (units) Ending (units) Variable costing operating income Year 1 170 200 $292,800 200 170 $269,600 Variable costing operating income. Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income Year 3 Absorption Costing Operating Incomes Year 1 $ 292,800 87,000 580,000 $ 959,800 Required: 1. Determine each year's absorption costing operating income. Present your answer in the form of a reconciliation report. $252,200 Answer is complete but not entirely correct. 170 240 Year 2 $ 269,600 ( 00 580,000 $ (310,400) Year 3 $ 252,200 203,000 493,000 $ 455,200