ap 11 Problems Saved HE 2 Solomon Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, maintained the same cost structure to manufacture its products. Units Produced Unita Sold ints 4,000 6,000 4.000 4.000 eBook Year Production and sales Year 2 Year Cost Data Direct materiala Direct labor Manufacturing overhead variable Manufacturing overhead-fixed Variable selling and administrative expenses Fixed welling and Administrative expenses References $14.90 per unit $ 23. per unit $10.90 per unit $99,000 $ 8.30 per unit sold $57,000 (Assume that selling and administrative expenses are associated with goods sold) Solomon sells its products for $108.40 per unit Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Solomon sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3? d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 and Year 3. Complete this question by entering your answers in the tabs below. Chap 11 Problems Saved 2 compiere is question by entering your answers in the caus veluw. Req A Year 2 Reg A Year 3 ReqB Reg D Req E Year 2 Reg E Year 3 20 Doints Prepare income statements based on absorption costing for Year 2. (Do not round intermediate calculations.) Book References $ 433.600 SOLOMON MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec 31, Year 2 Revenues Cost of Goods Sold: Direct labor $ 95,200 Direct materials 59,600 Manufacturing overhead 154 800 278,800 Gross margin Selling and administrative expenses Net income $ 278,800 Ren A Yona Req A Year 3 > Chap 11 Problems Saved Hel complete this quesuon vy entering your answers in the aus Deuw. 2 Reg A Year 2 Reg A Year la Reg B ReqD Req E Year 2 Reg E Year 3 20 oints Prepare income statements based on absorption costing for Year 3. (Do not round Intermediate calculations.) eBook References $ 433,600 SOLOMON MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 3 Revenues Cost of Goods Sold: Direct labor $ 95,200 Direct materials 59,600 Manufacturing overhead 154,800 278,800 Gross margin Selling and administrative expenses Net income $ 278,800 Chap 11 Problems Seved Saved 2 Solomon sells its products for $108.40 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Solomon sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3? d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 nd Year 3. 20 points Book References Complete this question by entering your arswers in the tabs below. Req A Year 2 Req A Year 3 Req B Reg D Reg E Year 2 Req E Year 3 Determine the costs of ending Inventory for Year 3. (Do not round Intermediate calculations.) Ending inventory Chap 11 Problems Saved 2 Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Year 3 Req B Reg D Reg E Year 2 Req E Year 3 20 points Prepare income statements based on variable costing for Year 2. (Do not round Intermediate calculations.) eBook SOLOMON MANUFACTURING Variable Costing Income Statement For the Year Ended Dec 31, Year 2 References $ 433,600 Revenues Variable costs: 0 433,600 $ 433,000 POGLD RAGE YOU 11 Problems Saved Help Keq A Year 2 Req A Year 3 2 Keq Year 2 keq Year 3 Prepare income statements based on variable costing for Year 3. (Do not round intermediate calculations.) its SOLOMON MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, Year 3 Book Variable costs: eferences 0 0 $ 0
