amariskManufacturing produces basketballs used for indoor and outdoor games. The company has had significant troubles over the past few years, as the number of competitors in the basketball market has increased dramatically. Recently, the company was forced to cut back production in order to reduce its rising inventory level. The following is a list of costs for the company in 2022:

Variable costs per unit

Rubber

$2.80Other materialsindirect

1.50Ball makersdirect labour

5.80Factory electricity usage

0.50Factory water usage

0.20Other labourindirect

0.27Selling and administrative expenses

0.40Fixed costs per year

Factory property taxes

$132,000Factory sewer usage

55,000Factory electricity usage

44,000Selling and administrative expenses

91,300

TamariskManufacturing had an ending inventory of93,500basketballs in 2021. For these units, the fixed manufacturing overhead cost was $4.00per unit and variable manufacturing costs were $9.67per unit. In 2022, the company produced38,500basketballs, sold79,800basketballs, and had an ending inventory of52,200basketballs. The basketballs sold for $18.00each.Tamariskuses the FIFO method.

CalculateTamarisk' manufacturing cost per unit under a variable-costing system.(Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.)

Manufacturing cost$

enter the manufacturing cost per unit in dollars rounded to 2 decimal places

per unit

Prepare a variable-costing income statement for 2022.(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

TAMARISKMANUFACTURING

Variable-Costing Income Statement

choose the accounting period

December 31, 2022

For the Month Ended December 31, 2022

For the Year Ended December 31, 2022

Sales in unitsenter a number of units

select an income statement item

Variable costs

Beginning inventory

Fixed costs

Ending inventory

Cost of goods available for sale

Contribution margin

Variable selling and administrative

Sales

Cost of goods manufactured

Fixed selling and administrative

Operating income

Fixed manufacturing overhead

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening name for section one

Fixed costs

Ending inventory

Cost of goods available for sale

Variable costs

Beginning inventory

Fixed selling and administrative

Contribution margin

Operating income

Fixed manufacturing overhead

Cost of goods manufactured

Variable selling and administrative

Sales

select an income statement item

Cost of goods manufactured

Cost of goods available for sale

Variable selling and administrative

Fixed selling and administrative

Operating income

Beginning inventory

Ending inventory

Variable costs

Contribution margin

Sales

Fixed manufacturing overhead

Fixed costs

$

enter a dollar amount

select an income statement item

Beginning inventory

Variable costs

Cost of goods manufactured

Variable selling and administrative

Operating income

Fixed costs

Fixed selling and administrative

Ending inventory

Contribution margin

Sales

Cost of goods available for sale

Fixed manufacturing overhead

enter a dollar amount

select an income statement item

Variable selling and administrative

Contribution margin

Operating income

Sales

Variable costs

Fixed manufacturing overhead

Cost of goods manufactured

Beginning inventory

Fixed selling and administrative

Fixed costs

Cost of goods available for sale

Ending inventory

enter a subtotal of the two previous amounts

select an income statement item

Fixed manufacturing overhead

Cost of goods available for sale

Contribution margin

Operating income

Ending inventory

Fixed costs

Sales

Variable selling and administrative

Variable costs

Beginning inventory

Cost of goods manufactured

Fixed selling and administrative

enter a dollar amount

select a closing name for section one

Operating income

Cost of goods manufactured

Sales

Variable costs

Beginning inventory

Cost of goods available for sale

Fixed selling and administrative

Contribution margin

Ending inventory

Fixed costs

Fixed manufacturing overhead

Variable selling and administrative

enter a total amount for section one

select an income statement item

Cost of goods manufactured

Variable costs

Variable selling and administrative

Fixed manufacturing overhead

Contribution margin

Fixed costs

Sales

Cost of goods available for sale

Ending inventory

Operating income

Fixed selling and administrative

Beginning inventory

enter a dollar amount

enter a subtotal of the two previous amounts

enter a total amount for the first part

Fixed manufacturing overhead

Cost of goods available for sale

Ending inventory

Operating income

Cost of goods manufactured

Variable costs

Contribution margin

Beginning inventory

Variable selling and administrative

Fixed costs

Fixed selling and administrative

Sales

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening name for section two

Fixed selling and administrative

Variable costs

Fixed costs

Fixed manufacturing overhead

Ending inventory

Sales

Contribution margin

Cost of goods manufactured

Cost of goods available for sale

Operating income

Variable selling and administrative

Beginning inventory

select an income statement item

Cost of goods available for sale

Variable costs

Sales

Operating income

Ending inventory

Beginning inventory

Fixed manufacturing overhead

Contribution margin

Variable selling and administrative

Cost of goods manufactured

Fixed selling and administrative

Fixed costs

enter a dollar amount

select an income statement item

Beginning inventory

Cost of goods manufactured

Fixed manufacturing overhead

Variable costs

Cost of goods available for sale

Sales

Contribution margin

Variable selling and administrative

Fixed selling and administrative

Ending inventory

Operating income

Fixed costs

enter a dollar amount

enter a subtotal of the two previous amounts

select a closing name for this statement

Cost of goods available for sale

Variable costs

Cost of goods manufactured

Variable selling and administrative

Contribution margin

Beginning inventory

Fixed costs

Sales

Fixed selling and administrative

Operating income

Fixed manufacturing overhead

Ending inventory

$

enter a total amount for this statement

Calculate the manufacturing cost per unit under a throughput-costing system.(Round answer to 2 decimal places, e.g. 15.25.)

Manufacturing cost$

enter the manufacturing cost per unit in dollars rounded to 2 decimal places

per unit

Prepare a throughput-costing income statement for 2022. Assume that increased costs in 2022 are related to variable costs other than materials.(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

TAMARISKMANUFACTURING

Throughput Costing-Income Statement

choose the accounting period

December 31, 2022

For the Month Ended December 31, 2022

For the Year Ended December 31, 2022

Sales in unitsenter a number of units

select an income statement item

Variable selling and administrative expense

Throughput contribution margin

Variable cost of goods sold

Net income before tax

Beginning inventory

Fixed manufacturing, selling and administrative costs

Throughput cost of goods sold

Sales

Operating expenses

Ending inventory

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an income statement item

Operating expenses

Throughput contribution margin

Throughput cost of goods sold

Variable cost of goods sold

Variable selling and administrative expense

Net income before tax

Ending inventory

Sales

Fixed manufacturing, selling and administrative costs

Beginning inventory

enter a dollar amount

select a summarizing line for the first part

Operating expenses

Variable selling and administrative expense

Beginning inventory

Net income before tax

Throughput contribution margin

Variable cost of goods sold

Ending inventory

Fixed manufacturing, selling and administrative costs

Throughput cost of goods sold

Sales

enter a total amount for the first part

select an opening section name

Add

Less

:

select an opening section name

Throughput contribution margin

Throughput cost of goods sold

Fixed manufacturing, selling and administrative costs

Beginning inventory

Ending inventory

Variable cost of goods sold

Net income before tax

Sales

Operating expenses

Variable selling and administrative expense

select an income statement item

Sales

Throughput cost of goods sold

Fixed manufacturing, selling and administrative costs

Net income before tax

Beginning inventory

Throughput contribution margin

Operating expenses

Variable cost of goods sold

Variable selling and administrative expense

Ending inventory

$

enter a dollar amount

select an income statement item

Throughput cost of goods sold

Operating expenses

Sales

Variable selling and administrative expense

Variable cost of goods sold

Net income before tax

Ending inventory

Throughput contribution margin

Fixed manufacturing, selling and administrative costs

Beginning inventory

enter a dollar amount

select an income statement item

Variable cost of goods sold

Sales

Operating expenses

Beginning inventory

Net income before tax

Variable selling and administrative expense

Ending inventory

Fixed manufacturing, selling and administrative costs

Throughput cost of goods sold

Throughput contribution margin

enter a dollar amount

enter a subtotal of the three previous amounts

select a closing name for this statement

Sales

Variable selling and administrative expense

Ending inventory

Operating expenses

Beginning inventory

Fixed manufacturing, selling and administrative costs

Variable cost of goods sold

Throughput contribution margin

Net income before tax

Throughput cost of goods sold

$

enter a total amount for this statement

CalculateTamarisk' manufacturing cost per unit under absorption costing.(Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.)

2021

2022

Manufacturing cost$

enter a dollar amount per unit rounded to 2 decimal places

per unit$

enter a dollar amount per unit rounded to 2 decimal places

per unit

Prepare an absorption-costing income statement for 2022.

TAMARISKMANUFACTURING

Absorption-Costing Income Statement

choose the accounting period

December 31, 2022

For the Month Ended December 31, 2022

For the Year Ended December 31, 2022

Sales in units

enter a number of units

select an income statement item

Fixed selling and administrative

Cost of goods available for sale

Operating income

Variable selling and administrative costs

Cost of goods sold

Beginning Inventory

Sales

Cost of goods manufactured

Ending inventory

Gross margin

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening section name

Operating income

Cost of goods available for sale

Ending inventory

Gross margin

Cost of goods sold

Fixed selling and administrative

Beginning Inventory

Sales

Variable selling and administrative costs

Cost of goods manufactured

select an income statement item

Fixed selling and administrative

Cost of goods manufactured

Operating income

Gross margin

Variable selling and administrative costs

Cost of goods available for sale

Cost of goods sold

Ending inventory

Sales

Beginning Inventory

$

enter a dollar amount

select an income statement item

Fixed selling and administrative

Beginning Inventory

Cost of goods manufactured

Cost of goods sold

Variable selling and administrative costs

Cost of goods available for sale

Operating income

Gross margin

Sales

Ending inventory

enter a dollar amount

select an income statement item

Cost of goods manufactured

Gross margin

Cost of goods sold

Beginning Inventory

Fixed selling and administrative

Sales

Variable selling and administrative costs

Ending inventory

Operating income

Cost of goods available for sale

enter a subtotal of the two previous amounts

select an income statement item

Operating income

Fixed selling and administrative

Beginning Inventory

Cost of goods sold

Sales

Ending inventory

Cost of goods available for sale

Variable selling and administrative costs

Cost of goods manufactured

Gross margin

enter a dollar amount

enter a subtotal of the two previous amounts

select a summarizing line for the first part

Cost of goods available for sale

Operating income

Cost of goods sold

Gross margin

Beginning Inventory

Sales

Fixed selling and administrative

Ending inventory

Variable selling and administrative costs

Cost of goods manufactured

enter a total amount for the first part

select between addition and deduction

Add

Less

:select an income statement item

Sales

Variable selling and administrative costs

Operating income

Cost of goods sold

Ending inventory

Gross margin

Cost of goods available for sale

Cost of goods manufactured

Beginning Inventory

Fixed selling and administrative

enter a dollar amount

select an income statement item

Cost of goods manufactured

Operating income

Cost of goods sold

Sales

Beginning Inventory

Ending inventory

Variable selling and administrative costs

Gross margin

Fixed selling and administrative

Cost of goods available for sale

enter a dollar amount

enter a subtotal of the two previous amounts

select a closing name for this statement

Gross margin

Beginning Inventory

Ending inventory

Cost of goods sold

Sales

Cost of goods manufactured

Fixed selling and administrative

Operating income

Variable selling and administrative costs

Cost of goods available for sale

$

enter a total amount for this statement

Tamarisk' chief financial officer, Mr.Thomas, is contemplating the benefits of using the absorption-costing and variable-costing approaches. He has asked you to perform a variety of tasks to help him analyze the differences between the two approaches:

1. Reconcile the differences between the income values of the two approaches.

Reconciliation of net income

Variable-costing net income$

enter a dollar amount

FMOH deferred in ending inventoryenter a dollar amount

FMOH released from beginning inventoryenter a dollar amount

Absorption-costing net income$

enter a total amount

2. Mr.Thomashas heard that some basic managerial tasks can be better performed when variable costing is used. Calculate the break-even point in units for the company in 2022 using the variable-costing data.(Round answer to 0 decimal places, e.g. 5,275.)

Break-even pointenter the break-even point in units rounded to 0 decimal places

units

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