Crawford Electronics prepares income statements on an absorption costing basis for external purposes but uses variable costing for internal purposes. Crawford has been in business for 10 years and is expecting the following results for the next three years: Inventory on December 31, 2020, was 450 units including the following costs: Direct Material $1,790 Direct labor 551 Variable Overhead 264 Fixed Overhead (for absorption costing only) 1,560 In the future Crawford expects the following: 2021 2022 2023 Units to be Sold 7,800 10,300 11,800 Expected Selling Price $20 $22 $23 Units to be Produced 8,000 10,000 12,100 Expected Costs Per Unit Direct Materials Used $4.00 $4.20 $4.30 Per Unit Direct Labor Cost $1.25 $1.40 $1.60 Per Unit Variable Overhead $0.60 $0.62 $0.65 TOTAL Fixed Overhead Cost $28,000 $29,000 $30,000 Per Unit Variable Selling Expenses $1.20 $1.25 $1.30 TOTAL Fixed Selling Expenses $3,800 $3,900 $4,000 Per Unit Variable Administrative Expenses $1.50 $1.55 $1.55 TOTAL Fixed Administrative Expenses $12,000 $11,000 $11,200 A. Prepare formal projected income statements for Crawford Electronics for their next three years of operations (2021, 2022, and 2023) in side by side columns, assuming Crawford has adopted a FIFO system of inventory and uses: 1. 2. The absorption costing format (with period costs being grouped as selling costs and as administrative costs) The variable costing format B. Crawford is exploring the possibility of selling their products overseas beginning in 2022. The marketing department projects the overseas market could bring in additional sales of 900 units in 2022 and an additional 1,200 units in 2023. Selling price for these units would be set at $1.00 BELOW the selling price in the US. If these orders are accepted, Crawford would increase production from 10,000 units to 11,000 units in 2022 and from 12,100 units to 13,500 units in 2022. Crawford's factory has the capacity to produce 15,000 units per year so these new projections would be within the relevant range which means that variable costs should remain variable and fixed costs should remain fixed with the exception of an extra $1,300 to be spent in late 2021 for new advertising overseas in anticipation of opening the new markets overseas in 2022. Prepare formal income statements for Crawford Electronics for their next three years of operations (2021, 2022, and 2023) in side by side columns, assuming Crawford has adopted a FIFO system of inventory, and uses: 1. 2. The absorption costing format (with period costs being grouped as selling costs and as administrative costs) The variable costing format Just as we have demonstrated in class, I would like to see your work to support some of the calcu- lations in the cost of goods sold area. For Part A and Part B, please ROUND all costs per unit to 3 decimal places) but round all total dollar amounts to the nearest dollar (no decimal places). In Excel, you must write the formula in the cells which contain amounts to be recorded, as: A B C D 1 Sales 2 Cost of Goods Sold Units Price per unit Total Cost 3 Beginning Inventory of Finished Goods 100 $3.923 $392 4 Cost of Goods Manufactured 950 ROUND(D4/B4,3) $3,973 56 Goods Available for Sale 1,050 $4,365 Ending Inventory of Finished Goods 211 $4.18200000 =ROUND(B6*C6,0) 7 Cost of Goods Sold 839