Tamarisk Motors is a division of Tamarisk Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 190,000 units for $8.00 per unit. Dorothy Taylor is the division manager. She is considering producing either 190,000 or 250,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 190,000 units Based on 250,000 units Manufacturing cost per unit Based on 190.000 units Based on 250,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) 190,000 $8.00 $2.90 $475,000 $2.50 per unit ($475,000+ 190,000) $1.90 per unit ($475,000+250,000) $5.40 per unit ($2.90 variable+$2.50 fixed) $4.80 per unit ($2.90 variable+ $1.90 fixed) $0.50 per unit $11.300

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Prepare an absorption-costing income statement, with one column showing the results if 190,000 units are produced and one
column showing the results if 250,000 units are produced.
Units produced
Units sold
eTextbook and Media
TAMARISKMOTORS DIVISION
Income Statement
For the Year Ended 2022
Absorption Costing
250,000
190,000
Transcribed Image Text:Prepare an absorption-costing income statement, with one column showing the results if 190,000 units are produced and one column showing the results if 250,000 units are produced. Units produced Units sold eTextbook and Media TAMARISKMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing 250,000 190,000
Tamarisk Motors is a division of Tamarisk Products Corporation. The division manufactures and sells an electric switch used in a wide
variety of applications. During the coming year, it expects to sell 190,000 units for $8.00 per unit. Dorothy Taylor is the division
manager. She is considering producing either 190,000 or 250,000 units during the period. Other information is as follows:
Division Information for 2022
Beginning inventory
Expected sales in units
Selling price per unit
Variable manufacturing cost per unit
Fixed manufacturing cost (total)
Fixed manufacturing overhead costs per unit
Based on 190,000 units
Based on 250,000 units
Manufacturing cost per unit
Based on 190,000 units
Based on 250,000 units
Variable selling and administrative expenses
Fixed selling and administrative expenses (total).
190,000
$8.00
$2.90
$475,000
$2.50 per unit ($475,000+ 190,000)
$1.90 per unit ($475,000+250,000)
$5.40 per unit ($2.90 variable+ $2.50 fixed)
$4,80
per unit ($2.90 variable+ $1.90 fixed)
$0.50 per unit
$11.300
Transcribed Image Text:Tamarisk Motors is a division of Tamarisk Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 190,000 units for $8.00 per unit. Dorothy Taylor is the division manager. She is considering producing either 190,000 or 250,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 190,000 units Based on 250,000 units Manufacturing cost per unit Based on 190,000 units Based on 250,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total). 190,000 $8.00 $2.90 $475,000 $2.50 per unit ($475,000+ 190,000) $1.90 per unit ($475,000+250,000) $5.40 per unit ($2.90 variable+ $2.50 fixed) $4,80 per unit ($2.90 variable+ $1.90 fixed) $0.50 per unit $11.300
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