Rookie Accounting Student Here,

Need Help with the attached study spread sheet.

GoWay manufacturers and sells a portable battery-powered transportation device that can be stored in a backpack. The device usually sells for $5,000 per unit. The company normally sells units as quickly as manufactured and does not maintain a finished goods inventory. However, during the most recent year, the company produced 10,000 units, but only sold 9,000. A military customer has requested to buy the other 1,000 units for delivery on December 31 of the current year. The offered price is $4,000 per unit for all 1,000 units. Below are absorption-costing based calculations of ending inventory and net income, on the 9,000 units already sold. Variable manufacturing costs ($3,000 X 10,000) $ Fixed manufacturing costs 30,000,000 12,000,000 Cost of goods manufactured $ Cost of goods sold ($42,000,000 X (9,000/10,000)) 42,000,000 37,800,000 Ending inventory ($42,000,000 X (1,000/10,000)) $ 4,200,000 Sales (9,000 X $5,000) $ 45,000,000 Cost of goods sold 37,800,000 Gross profit $ 7,200,000 Selling, general, & administrative costs Variable (9,000 X $100) Fixed Net income $ 900,000 5,800,000 6,700,000 $ 500,000 Prepare a revised absorption-costing based income statement, assuming acceptance of the 1,000 unit order. Also prepare variable-costing income statements (with and without the order). Compare the results and evaluate whether the order should be accepted. Absorption Costing Variable Costing (9,000 units) Variable Costing (10,000 units)