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I have finished parts A-D and just need help with part E. Rainbow Concrete Corporation has provided the following data for its two most recent
I have finished parts A-D and just need help with part E.
Rainbow Concrete Corporation has provided the following data for its two most recent years of operation: Selling price per unit $88 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year 360,000 74,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory 15,000 10,000 5.000 Year 2 5,000 12,000 15,000 2,000 Complete (a) through (a). Assume the company uses absorption costing. Compute the unit product cost in each year. Year 1 Year 2 (b). Assume the company uses absorption costing. Prepare an income statement for each year. Year 1 Year 2 Sales C. Assume the company uses variable costing. Compute the unit product cost in each year. Year 1 Year 2 d. Assume the company uses variable costing. Prepare an income statement for each year. Year 1 Year 2 e. Prepare a report in good form reconciling the variable costing and absorption costing net incomes. Year 1 Year 2 Year 1 Year 2Step by Step Solution
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