Hi! Can you please do question 2 in the order of 1.png, 2.png, 3.png and 4.png? I've done it but I just wanted to check my answers.

2. =LZS points) variable costing vs absorption costing. Corpl Inc. provided the following summarized data for 2018 and 2019. Kineret manufactures a single product and started operation on January 1, 2018. (In all parts of this question show your calculations.) U nits Produced Units Sold 2019 20,000 22,400 2018 22,400 20,000 Total fixed manufacturing overhead 896,000 Variable manufacturing overhead per unit produced 21 Total fixed operating expense 540,000 Variable operating expense per unit sold 8 Direct materials per unit produced 15 Direct labor per unit produced 12 Selling price per unit a) What is product cost per unit under variable costing? 2018: 12+15+21= $48 2019:12+15+21=$43 b) What is product cost per unit under absorption costing? 2018: 12+1S+21+1896,000/2)122,400= $68 2019: 12+15+21+ [896,000121120,000=$70.4 c) 2018 ending inventorv under absorption costing is: 2 400*68= 163 200 d) 2018 ending inventory under variable costing is: 2,400*48= $115,200 e) 2019 cost of goods sold under absorption costing is: [70.4+8) *22,400+270,000=$2,026,160 f) 2019 cost of goods sold under variable costing is: 48+8 *22 400= l 254 400 g) Prepare the 2019 income statement based on absorption costing: SALE 22,400*180= $4,032,000 COGS 70.4'20,000+68*2,400= $(1,571,200) Gross prot $2,460,800 SG&A 8*22,400+ (540,000/2) =$(449,200) Operating income $2,011,600 h) Prepare the 2019 income statement based on variable costing: Sales 22,400'I 180: $4,032,000 Variable cost of goods sold 48*22,400= $0,075,200) Manufacturing margin $2,956,800 Variable SG&A 8*22,400 $(1?9,200) Contribution margin $2,722,600 Fix Cost =L 896000+540000)/2= $018,000) Operating income $2,059,600 0 Does income differ between the two method: yes j) If yes, which income is higher? By what amount? Explain why? Variable operating income is higher by $48,000 due to the fact that fixed manufacturing overhead, which is considered period cost under variable costing but inventoriable cost under absorption costing. Moreover, there is leftover inventories from 2018 that carry forward which creates the total difference of 2400 *20=48000 20= (896,000/2)/22.400 *) Under what condition your answer to part j would reverse? Quantity produce is higher than quantity sold I) The production manager was not happy to see 2019 inventory going down and wanted to increase production during 2019. The CFO, on the other hand, argued that based on current demand the company would not be able to sell more than 22,400 units in 2019, therefore increasing production will increase costs but not revenues, and would decrease the net income reported to investors (GAAP net income). The production manager, a NYU Stern graduate, told the CFO that GAAP net income would actually increase and that he did not understand accounting and should seek a career in dancing (yes, he is a little blunt..). Do you agree with CFO or the production manager? Support your answer. Production manager. GAAP net income is reported under absorption costing, which mean if the company increase production, it would actually reduce the fixed overhead cost allocated in COGS ( shifting it to inventory). The reduction in COGS without change in sales would increase Income.m) Assume that you must decide quickly whether to accept a special one-time order for 1000 units at $60 per unit. Which income statement presents the most relevant data? Determine the apparent profit or loss on the special order based this information. Variable costing income statement 60-48*1000= $12,000 prot on special order Mark Ture or False each of the following statements regarding the advantages and disadvantages of absorption vs. variable costing: n) Variable costing is more consistent with the matching principle of accounting. False 0) Absorption costing is required under GAAP. True p) Absorption costing is better suited for decision making. False q) Under variable costing income can be increased by increasing production costs. False