2021 2022 Units produced 60,000 50,000 Units sold 54,000 54,000 Selling price per unit Variable costs per unit $250 $250 Direct materials $80 $80 Direct labour 40 40 Variable overhead 35 35 Selling expenses Fixed manufacturing overhead Fixed selling and administrative expenses $ 300,000 $300,000 30 30 $2,500,000 $2,500,000 There was no beginning inventory on January 1, 2021. The company used the FIFO method to calculate the inventories. Ignore income taxes. Instructions a. Prepare income statements for 2021 and 2022 using the absorption-costing method.
2021 2022 Units produced 60,000 50,000 Units sold 54,000 54,000 Selling price per unit Variable costs per unit $250 $250 Direct materials $80 $80 Direct labour 40 40 Variable overhead 35 35 Selling expenses Fixed manufacturing overhead Fixed selling and administrative expenses $ 300,000 $300,000 30 30 $2,500,000 $2,500,000 There was no beginning inventory on January 1, 2021. The company used the FIFO method to calculate the inventories. Ignore income taxes. Instructions a. Prepare income statements for 2021 and 2022 using the absorption-costing method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
i need the last two parta only d and e
![Wei Nan Company manufactures and sells personal organizers. The following are the operating data for the
company for 2021 and 2022:
2021
2022
Units produced
60,000
50,000
Units sold
54,000
54,000
Selling price per unit
Variable costs per unit
$250
$250
Direct materials
$80
$80
Direct labour
40
40
Variable overhead
35
35
Selling expenses
Fixed manufacturing overhead
Fixed selling and administrative expenses
30
30
$2,500,000 S2,500,000
$ 300,000
$ 300,000
There was no beginning inventory on January 1, 2021. The company used the FIFO method to calculate the cost of
inventories. Ignore income taxes.
Instructions
a. Prepare income statements for 2021 and 2022 using the absorption-costing method.
b. Prepare income statements for 2021 and 2022 using the variable-costing method.
c. Reconcile the absorption-costing and variable-costing net income figures for 2021 and 2022.
d. Prepare income statements for 2021 and 2022 using the throughput-costing method.
e. Reconcile the throughput-costing and variable-costing net income figures for 2021 and 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F846b8248-7287-4cb7-b73b-d619012e2023%2F5323139a-c744-42aa-b433-255808a51f32%2Fmngooga_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wei Nan Company manufactures and sells personal organizers. The following are the operating data for the
company for 2021 and 2022:
2021
2022
Units produced
60,000
50,000
Units sold
54,000
54,000
Selling price per unit
Variable costs per unit
$250
$250
Direct materials
$80
$80
Direct labour
40
40
Variable overhead
35
35
Selling expenses
Fixed manufacturing overhead
Fixed selling and administrative expenses
30
30
$2,500,000 S2,500,000
$ 300,000
$ 300,000
There was no beginning inventory on January 1, 2021. The company used the FIFO method to calculate the cost of
inventories. Ignore income taxes.
Instructions
a. Prepare income statements for 2021 and 2022 using the absorption-costing method.
b. Prepare income statements for 2021 and 2022 using the variable-costing method.
c. Reconcile the absorption-costing and variable-costing net income figures for 2021 and 2022.
d. Prepare income statements for 2021 and 2022 using the throughput-costing method.
e. Reconcile the throughput-costing and variable-costing net income figures for 2021 and 2022.
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