Exercise 7-4 Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit $ Product Weedban Greengrow 9.00 $ 35.00 Variable expenses per unit $ Traceable fixed expenses per year 2.40 $ 130,000 $ 12.00 $ 48,000 Common fixed expenses in the company total $113,000 annually. Last year the company produced and sold 38,500 units of Weedban and 18,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow Exercise 7-13 Inferring Costing Method; Unit Product Cost [LO7-1] Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 10 0945 $ 62,000 $ 290,000 During this year, 31,000 units were produced and 24,500 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $149,500 for the 6,500 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 6,500 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $149,500 the correct amount to include on the balance sheet for external reporting purposes? b. What balance should be reported in the Finished Goods inventory account for external reporting purposes? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. (Round intermediate calculation to the nearest dollar amount.) Ending Balance in Finished Goods Variable costing Absorption costing < Req 1A Req 1B >