It is the end of 2020. Countrywide All - Fixed Corporation began operations in January 2019. The company is so named because it has no variable costs. All its

costs are fixed; they do not vary with output. Countrywide All - Fixed Corp. is located on the bank of a river and has its own hydroelectric plant to supply power,

light, and heat. The company manufactures a synthetic fertilizer from air and river water and sells its product at a price that is not expected to change. It has a

small staff of employees, all paid fixed annual salaries. The output of the plant can be increased or decreased by pressing a few buttons on a keyboard. The

following budgeted and actual data are for the operations of Countrywide All - Fixed.

can you be more specific on what you cant see!!?

The company uses budgeted production as the denominator level and writes off any production-volume variance to cost of goods sold. 2019 2020 Sales 50,000 tons 50,000 tons Production 100.000 tons 0 tons $100 per ton $100 per ton Selling price Costs (all fixed): Manufacturing $4,800,000 $4,800,000 Operating (nonmanufacturing) $106.000 $ 106,000 a Management adopted the policy, effective January 1, 2020, of producing only as much product as needed to fill sales orders. During 2020, sales were the same as for 2019 and were filled entirely from inventory at the start of 2020. 1. Prepare income statements with one column for 2019, one column for 2020, and one column for the 2 years together using (a) variable costing and (b) absorption costing. 2. What is the breakeven point under (a) variable costing and (b) absorption costing? 3. What inventory costs would be carried in the balance sheet on December 31, 2019 and 2020, under each method? 4. Assume that the performance of the top manager of Countrywide All - Fixed is evaluated and rewarded largely on the basis of reported operating income. Which costing method would the manager prefer? Why? Now prepare the (b) absorption costing income staternent for 2019, 2020, and the 2 year total. (Enter a "d" for any $0 balances. Use parentheses or a minus sign for an operati units of production as the denominator level in the allocation rate.) 2019 2020 Total Revenue 5,000,000 5,000,000 10,000,000 Cont of goods sold Beginning inventory Allocated fixed manufacturing costs Deduct ending Inventory Adjustment for production volume varianco Total cost of goods sold Gross margin Operating costs Operating income (loss) Requirement? What is the Requirement 2. What is the breakeven point under (a) variable casting and (b) absorption costing? Start by calculating the breakeven point under (a) variable costing. (Round your answer up to the nearest unit) Breakeven point Total fixed costs Contribution margin per ton under variable costing 4,806,000 100 49.060 Now calculate the breakoven point under (b) absorption costing. Enter the formula labels and amounts needed to calculate the absorption costing breakeven sales. (Assume *P* in the produs manufacturing overhead, CM contribution margin.) I * Revenue P 11- 11- (Round your answer up to the nearest unit) The breakeven point under absorption costing when sales are tonsis units Requirement 3. What inventory costs would be carried in the balance sheet on December 31, 2019 and 2020, under each method? (For accounts with a $0 balance, enter a $0 in the approp December 31, 2019 0 Variable costing Absorption costing (nonmanufacturing) December 31, 2020 0 It is the end of 2020. Countrywide All - Fixed Corporation began operations in January 2019. The company is so named because it has + 0 Now prepare the (b) absorption costing income statement for 2019, 2020, and the 2 year total. (Enter a "O" for any $0 balances. Use par variance as favorable (F) or unfavorable (U). Use units of production as the denominator level in the allocation rate.) 2019 2020 Total Revenue 5,000,000 5,000,000 10,000,000 Cost of goods sold Beginning inventory Allocated fixed manufacturing costs Deduct ending inventory Adjustment for production-volume variance Total cost of goods sold Gross margin Operating costs Operating income (loss) cl U > U Start by calculating the breakeven point under (a) variable costing (Round your answer up to the nearest unit) Breakeven point Total foxed costs Contribution margin porton under variable costing 4,900,000 100 49,060 Now calculate the breakeven point under (b) absorption costing. Enter the formula labels and amounts needed to calculate the absorption costing breakeven sales. (Assume "p" is the preu level in units, Abbreviations used: MOH = manufacturing overhead, CM = contribution margin.) Revenue P ) (Round your answer up to the nearest unit) The breakeven point under absorption costing when sales are tons is Requirement 3. What inventory costs would be carried in the balance sheet on December 31, 2019 and 2020, under each method? (For accounts with a 50 balance, ontar a 50 in the cell) he company uses budgeted production as the denominator level and rites off any production-volume variance to cost of goods sold. 2019 2020 Sales 50,000 tons 50,000 tons Production 100,000 tons 0 tons Selling price $100 per ton $100 per ton Costs (all fixed): Manufacturing $4,800,000 $4,800,000 Operating (nonmanufacturing) $106,000 $ 106,000 Management adopted the policy, effective January 1, 2020, of producing only as much product as needed to fill sales orders. During 2020, sales were the same as for 2019 and were filled entirely from inventory at the start of 2020