24 Starfax Inc. manufactures a small part that is widely used in various electronic products. Operating results for the first three years of operation ar Year 1 Year 2 Sales 800,000 720,000 CGS 460.000 360.000 Gross margin 340,000 360,000 Selling and admin. Expenses 250.000 235,000 Net operating income (loss) 90,000 125,000 Year 3 800,000 Production and sales data for the three year period were as follows: Production units Sales units Year 1 50,000 50,000 Year 2 60,000 45,000 Year 3 40,000 50,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1. The company plant is highly automated. Variable manufacturing costs total $2 per unit. Annual fixed manufacturing overhead is $420,000, 2. Variable selling and administrative expenses were $2 per unit sold. Annual fixed selling and administrative expenses totaled $140,000 annual 3. The above costs stayed constant across the three years and the company uses a FIFO inventory flow assumption. Required: 1. Compete the traditional income statement above for year 3. 2. Compete the following NOI Reconcile table (show full details how you calculated the deferred and released amounts for any credit). Reconciliation report Year 1 Year 2 Year 3 Variable costing NOI FO deferred in Inventory FO released from Inventory Absorption costing NOI 90,000 125,000 : 3(1200) QUESTION 24 Starfax Inc. manufactures a small part that is widely used in various electronic produ Year 1 Year 2 Sales 800,000 720,000 CGS 460,000 360,000 Gross margin 340,000 360,000 Selling and admin. Expenses 250,000 235,000 Net operating income (loss) 90,000 125,000 Year 3 800,000 Production and sales data for the three year period were as follows: Production units Sales units Year 1 50,000 50,000 Year 2 60,000 45,000 Year 3 40,000 50,000 words:0 in various electronic products. Operating results for the first three years of operation are as follows: Year 3 2 00 800,000 00 00 00 00 follows: Year 3 40,000 50,000 acturing costs total $2 per unit Annual fixed manufacturing overhead is $420.000 to save all answers. Additional information: 1. The company plant is highly automated. Variable manufacturing costs total $2 per unit. Annual fixed manufacturing overhead is $420,000. 2. Variable selling and administrative expenses were $2 per unit sold. Annual fixed selling and administrative expenses totaled $140,000 annum 3. The above costs stayed constant across the three years and the company uses a FIFO inventory flow assumption. Required: 1. Compete the traditional income statement above for year 3. 2. Compete the following NOI Reconcile table (show full details how you calculated the deferred and released amounts for any credit). Reconciliation report Year 1 Year 2 Year 3 Variable costing NOI FO deferred in Inventory FO released from Inventory Absorption costing NOI 90,000 125,000