Please provide the answers with clear explanations and calculations.

Q7. Wainright, Inc. had the following production and sales levels for the first four years of its existence.

Year 1Year 2Year 3Year 4

Production (in units)8,00010,0008,0008,000

Sales (in units)7,5009,0009,5007,500

Selling price per unit, variable cost per unit, and total fixed costs are the same each year. Wainright uses FIFO for its inventory costing.

Which of the following statements is NOT correct?

Multiple Choice

A. Total profit over the first three years is the same under absorption costing and variable costing.

B. Under variable costing, net income for Year 1 and Year 4 will be the same.

C. Variable costing net income would exceed absorption costing net income in Year 3.

D. Under absorption costing, cost per unit would be the same in three of the four years.

E. Absorption costing will produce a greater ending inventory valuation in each year.

Q8. For a company using absorption costing, where will the fixed overhead incurred during the year be reported on the financial statements at the end of the period?

Multiple Choice

A. Balance Sheet

B. Income Statement

C. Both the Balance Sheet and the Income Statement

D. It depends

Q9. Use the following for Questions 9 & 10:

Firelake Enterprises has the following information for March, its first month of operations:

Fixed overhead$90,000Variable overhead per unit$5

Units in ending inventory2,000Direct labor per unit$49

Units sold (@ $120 each)13,000Fixed selling expenses$139,000

Direct materials per unit$29Variable selling expense per unit$4

Stolen/discarded units ("shrink")0

What is the per unit cost under absorption costing?

Q10. For March, how much greater is Firelake's net income under asborption costing than it is under variable costing?

Thanks