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Metlock Motors is a division of Metlock Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Metlock Motors is a division of Metlock Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Barbara Jones is the division manager. She is considering producing either 210,000 or 280,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory 0 Expected sales in units 210,000 Selling price per unit $8.00 Variable manufacturing cost per unit $2.90 Fixed manufacturing cost (total) $588,000 Fixed manufacturing overhead costs per unit Based on 210,000 units $2.80 per unit ($588,000 + 210,000) Based on 280,000 units $2.10 per unit ($588,000 + 280,000) Manufacturing cost per unit Based on 210,000 units $5.70 per unit ($2.90 variable + $2.80 xed) Based on 280,000 units $5.00 per unit ($2.90 variable + $2.10 xed) Variable selling and administrative expenses $0.40 per unit Fixed selling and administrative expenses (total) $10,500 (a) Prepare an absorption-costing income statement, with one column showing the results if 210,000 units are produced and one column showingthe results if 280,000 units are produced. METLOCKMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing Units produced 280,000 210,000 Units sold V $ $
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