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Required $1$

Required $2$

Required $3$

Complete the following income statements using variable costing.

$$

Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal $300$ workstations $($at a sales price of $$3,500$ each$)$ for $20,21.$ The workstations' manufacturing costs include the following.

$\backslash$table$[[$Direct materials,$$710$ per unit$],[$Direct labor,$$360$ per unit$],[$Variable overhead,$$100$ per unit$],[$Fixed overhead,$$19,200$ per year$]]$

Selling and administrative expenses for these workstations follow.

Variable

$$30$ per unit

Fixed

$$3,500$ per year

Santana is considering how many workstations to produce in $2021.$ She is confident that she will be able to sell any workstations in her $2021$ ending inventory during $2022.$ However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.

Required:

Complete the following income statements using absorption costing.

Complete the following income statements using variable costing.

Which costing method, absorption or variable, yields the higher income when $320$ workstations are produced and $300$ are sold?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Complete the following income statements using absorption costing.

$\backslash$table$[[\backslash$table$[[$Product cost per unit $-$ Absorption costing$],[$Direct materials per unit$]],$Production volume$],[\backslash$table$[[300],[$workstations$]],\backslash$table$[[320],[$workstations$]]],[$$$,710,$$$,710],[$Direct labor per unit,,$360,,360],[$Variable overhead per unit,,$100,,100],[$Fixed selling and administrative expenses,,$60,,1,170],[$Product cost per unit $-$ Absorption costing,$$,1,230,$$$,2,340]]$Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal $300$ workstations $($at a sales price of $$3,500$ each$)$ for $20,21.$ The workstations' manufacturing costs include the following.

$\backslash$table$[[$Direct materials,$$710$ per unit$],[$Direct labor,$$360$ per unit$],[$Variable overhead,$$100$ per unit$],[$Fixed overhead,$$19,200$ per year$]]$

Selling and administrative expenses for these workstations follow.

Variable

$$30$ per unit

Fixed

$$3,500$ per year

Santana is considering how many workstations to produce in $2021.$ She is confident that she will be able to sell any workstations in her $2021$ ending inventory during $2022.$ However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.

Required:

Complete the following income statements using absorption costing.

Complete the following income statements using variable costing.

Which costing method, absorption or variable, yields the higher income when $320$ workstations are produced and $300$ are sold?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Complete the following income statements using absorption costing.

$\backslash$table$[[\backslash$table$[[$Product cost per unit $-$ Absorption costing$],[$Direct materials per unit$]],$Production volume$],[\backslash$table$[[300],[$workstations$]],\backslash$table$[[320],[$workstations$]]],[$$$,710,$$$,710],[$Direct labor per unit,,$360,,360],[$Variable overhead per unit,,$100,,100],[$Fixed selling and administrative expenses,,$60,,1,170],[$Product cost per unit $-$ Absorption costing,$$,1,230,$$$,2,340]]$

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