HelpSave EaSutuminWayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations tat asales price of $3.200 each) for 2021, The workstations' manufacturing costs include the followingDireet materialaDirect laborVariable overheadFixed overhead770 per unit400 per unit$60 per unit$19.200 per yearThe selling expenses related to these workstations follow.Variable selling expensesFixed selling expenses$ 35 per unit$3,000 per yearWayne Frederick is considering how many workstations to produce in 2021, He is confident that he will be able to sell anyworkstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not havesufficient storage space for many more workstations.Required:1. Complete the following income statements using absorption costing.2. Complete the following income statements using variable costing.Complete this question by entering your answers in the tabs below.Required 1Required 2 Complete the following income statements using absorption costing.Cost of goods sold:Production volume300320workstationsworkstationsCost of goods sold per unitNumber of workstations soldTotal cost of goods soldBison Business SolutionsAbsorption Costing Income StatementsProduction volume300320Sales volume - 300 Workstationsworkstations workstationsvolume and sales volume affect the reported net income (loss)?E IUIUwing income statements using variable costing.Under absorption costing, can the difference between productionBison Business SolutionsVariable Costing Income StatementsProduction volume (units)300320workstations300workstationsworkstations300Sales volume (units)workstations0 $Net income (loss)Under variable costing, can a company increaseaomo by increasing production?

Total cost of goods sold = Cost of goods sold per unit * Number of units produced Gross margin =…

Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations tat a sales price of $3.200 each) for 2021, The workstations' manufacturing costs include the following Direet materiale Direet labor Variable overhead Pixed ovechead 770 per unit 400 per unie .60 par unit 19.200 per year The selling expenses related to these workstations follow. Variable geliing expenses Pixed selling expenses 35 per unit $3,000 per year Wayne Frederick is considering how many workstations to produce in 2021, He is confident that he will be able to sell any workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing.

Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations tat a sales price of $3.200 each) for 2021, The workstations' manufacturing costs include the following Direet materiale Direet labor Variable overhead Pixed ovechead 770 per unit 400 per unie .60 par unit 19.200 per year The selling expenses related to these workstations follow. Variable geliing expenses Pixed selling expenses 35 per unit $3,000 per year Wayne Frederick is considering how many workstations to produce in 2021, He is confident that he will be able to sell any workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Save Ea
Sutumin
Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations tat a
sales price of $3.200 each) for 2021, The workstations' manufacturing costs include the following
Direet materiala
Direct labor
Variable overhead
Fixed overhead
770 per unit
400 per unit
$60 per unit
$19.200 per year
The selling expenses related to these workstations follow.
Variable selling expenses
Fixed selling expenses
$ 35 per unit
$3,000 per year
Wayne Frederick is considering how many workstations to produce in 2021, He is confident that he will be able to sell any
workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have
sufficient storage space for many more workstations.
Required:
1. Complete the following income statements using absorption costing.
2. Complete the following income statements using variable costing.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2

Complete the following income statements using absorption costing.
Cost of goods sold:
Production volume
300
320
workstations
workstations
Cost of goods sold per unit
Number of workstations sold
Total cost of goods sold
Bison Business Solutions
Absorption Costing Income Statements
Production volume
300
320
Sales volume - 300 Workstations
workstations workstations
volume and sales volume affect the reported net income (loss)?
E IUIUwing income statements using variable costing.
Under absorption costing, can the difference between production
Bison Business Solutions
Variable Costing Income Statements
Production volume (units)
300
320
workstations
300
workstations
workstations
300
Sales volume (units)
workstations
0 $
Net income (loss)
Under variable costing, can a company increase
aomo by increasing production?

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