Question 33 of 35 - / 18 View Policies Current Attempt in Progress Ivanhoe Manufacturing produces basketballs used for indoor and outdoor games. The company has had significant troubles over the past few years, as the number of competitors in the basketball market has increased dramatically. Recently, the company was forced to cut back production in order to reduce its rising inventory level. The following is a list of costs for the company in 2022: Variable costs per unit Rubber $2.75 Other materials-indirect 1.50 Ball makers-direct labour 5.80 Factory electricity usage 0.50 Factory water usage 0.15 Other labour-indirect 0.25 Selling and administrative expenses 0.40 Fixed costs per year Variable costs per unit Rubber $2.75 Other materials-indirect 1.50 Ball makers-direct labour 5.80 Factory electricity usage 0.50 Factory water usage 0.15 Other labour-indirect 0.25 Selling and administrative expenses 0.40 Fixed costs per year Factory property taxes $150,137 Factory sewer usage 62,500 Factory electricity usage 50,000 Selling and administrative expenses 103,750 Ivanhoe Manufacturing had an ending inventory of 106,250 basketballs in 2021. For these units, the fixed manufacturing overhead cost was $4.00 per unit and variable manufacturing costs were $9.62 per unit. In 2022, the company produced 43,700 basketballs, sold 90,900 basketballs, and had an ending inventory of 59,050 basketballs. The basketballs sold for $18.00 each. Ivanhoe uses the FIFO method. Calculate Big Sports' manufacturing cost per unit under a variable-costing system. (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost per unit Prepare a variable-costing income statement for 2020. BIG SPORTS MANUFACTURING Variable-Costing Income Statement Sales in units Calculate the manufacturing cost per unit under a throughput-costing system. (Round answer to 2 decimal places, e.g. 15.25.) Calculate the manufacturing cost per unit under a throughput-costing system. (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost per unit Prepare a throughput-costing income statement for 2020. Assume that increased costs in 2020 are related to variable costs other than materials. Prepare a throughput-costing income statement for 2020. Assume that increased costs in 2020 are related to variable costs other than materia BIG SPORTS MANUFACTURING Throughput Costing-Income Statement Sales in units $ $ $ Calculate Big Sports' manufacturing cost per unit under absorption costing. (Round answer to 2 decimal places, e.g. 15.25.) 2019 2020 per unit Manufacturing cost $ per unit $ Prepare an absorption-costing income statement for 2020. Prepare an absorption-costing income statement for 2020. BIG SPORTS MANUFACTURING Absorption-Costing Income Statement Sales in units Big Sports' chief financial officer, Mr. Swetkowski, is contemplating the benefits of using the absorption-costing and variable-costing approaches. He has asked you to perform a variety of tasks to help him analyze the differences between the two approaches: 1. Reconcile the differences between the income values of the two approaches. Reconciliation of net income Variable-costing net income FMOH deferred in ending inventory FMOH released from beginning inventory Absorption-costing net income $ 2. Mr. Swetkowski has heard that some basic managerial tasks can be better performed when variable costing is used. Calculate the break-even point in units for the company in 2020 using the variable-costing data. (Round answer to 0 decimal places, e.g. 5,275.) Break-even point units
