Breadfruit, Inc. began business last year making decorated platters. The unit costs on a normal costing basis are attached. During the year, the company had the attached activity.

The actual fixed manufacturing overhead was $10,000 greater than the budgeted fixed manufacturing overhead. Any over- or underapplied manufacturing overhead is closed to cost of goods sold at the end of the year.

REQUIRED:

(1) Compute the manufacturing cost per unit that the company should use to value its inventory of finished goods using the following costing methods.

(a) Full absorption costing.

(b) Variable costing

(2)Using the attached forms, prepare an income statement for the company using full absorption costing. Show all appropriate calculations. Round all dollar amounts to the nearest whole dollar.

(3) Using the attached forms, prepare an income statement for the company using variable costing. Show all appropriate calculations. Round all dollar amounts to the nearest whole dollar.

Breadfruit, Inc. began business last year making decorated platters. The unit costs on a normal costing basis are attached. During the year, the company had the attached activity. The actual fixed manufacturing overhead was $10,000 greater than the budgeted fixed manufacturing overhead. Any over-or underapplied manufacturing overhead is closed to cost of goods sold at the end of the year. REQUIRED: (1) Compute the manufacturing cost per unit that the company should use to value its inventory of finished goods using the following costing methods. (a) Full absorption costing. (b) Variable costing. (2) Using the attached forms, prepare an income statement for the company using full absorption costing. Show all appropriate calculations. Round all dollar amounts to the nearest whole dollar. (3) Using the attached foms, prepare an income statement for the company using variable costing. Show all appropriate calculations. Round all dollar amounts to the nearest whole dollar. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{BREADFRUTT,INC.INCOMESTATEMENT-VARIABLECOSTINGFORCURRENTYEAR} \\ \hline & \multicolumn{1}{|c|}{ Sales Revenue } & \\ \hline Variable Cost of Goods Sold: & S & \\ \hline Beginning Inventory & & \\ \hline Add: Variable Cost of Goods Manufactured: & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & Total Variable Cost of Goods Manufactured & & \\ \hline & Cost of Goods Available For Sale & & \\ \hline & Less: Ending Inventory & & \\ \hline Variable Cost of Goods Sold & & \\ \hline & Manufacturing Margin & & \\ \hline & Other Variable Expenses: & & \\ \hline & & & \\ \hline & & & \\ \hline & Total Other Variable Expenses & & \\ \hline & Contribution Margin & & \\ \hline & Fixed Expenses: & & \\ \hline & & & \\ \hline & Total Fixed Expenses & & \\ \hline & Operating Income & & \\ \hline & & & \\ \hline \end{tabular}