Perez Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products. Units Produced 4,000 6,000 Units sold 4,000 4.ee Year Production and Sales Year 2 Year 3 Cost Data Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Variable selling and administrative expenses Fixed selling and administrative expenses $ 14.60 per unit $ 23.50 per unit $ 10.00 per unit $100, 200 $ 8.30 per unit sold $ 60,000 (Assume that selling and administrative expenses are associated with goods sold) Perez sells its products for $109.80 per unit. Required a. Prepare income statements based on absorption costing for Year 2 nd Year 3. b. Since Perez sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3? d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 and Year 3. Complete this question by entering your answers in the tabs below. 2 Reg A Year 2 Req A Year 3 ReqB ReqD Req E Year 2 Req E Year 3 Prepare income statements based on absorption costing for Year 2. (Do not round Intermediat 0 oints PEREZ MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 2 Skipped eBook References Direct labor Direct materials Manufacturing overhead Operating expenses Revenues Selling and administrative expenses 0 Reg A Year 3 > 2 Reg A Year 2 Req A Year 3 Req B ReqD Req E Year 2 Req E Year 3 Prepare income statements based on absorption costing for Year 2. (Do not round Inte 0 onts PEREZ MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31. Year 2 Skipped Cost of Goods Sold: eBook Roferences Req A Year 3 Chap 11 Problems 2 Reg A Year 2 Reg A Year 3 Req B ReqD Req E Year 2 Req E Year 3 Prepare Income statements based on absorption costing for Year 3. (Do not round Intermediate cal 20 points PEREZ MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 3 Skipped Cost of Goods Sold: eBook References 0 Perez sells its products for $109.80 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Perez sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3? d. Determine the costs of ending inventory for Year 3, e. Prepare income statements based on variable costing for Year 2 and Year 3, pped Book Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Year 3 Rego Reg D Rog Year 2 Red Year 3 Determine the costs of ending Inventory for Year 3. (Do not round intermediate calcutations.) Ending Inventory Req A Year 2 Req A Year 3 ReqB ReqD Req E Year 2 Req E Year 3 20 points Prepare income statements based on variable costing for Year 2. (Do not round interme Skipped PEREZ MANUFACTURING Variable Costing Income Statement For the Year Ended Dec 31, Year 2 eBook References Direct labor Direct materials Fixed manufacturing overhead Fixed selling and administrative expenses Operating expenses 0 0 0 Req A Year 2 Req A Year 3 ReqB Req D Req E Year 2 Req E Year 3 Prepare income statements based on variable costing for Year 2. (Do not round Intermediate calculations ed PEREZ MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, Year 2 ok ces Fixed selling and administrative expenses Operating expenses Revenues Variable manufacturing overhead Variable selling and administrative expenses
