Rundle 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 Year Produced Units Sold Production and Sales Year 2 4,000 4,000 Year 3 6,000 4,000 Cost Data Direct materials $ 14.20 per unit Direct labor $ 23.10 per unit Manufacturing overhead-variable $ 10.40 per unit Manufacturing overhead-fixed $101,400 Variable selling and administrative expenses $ 7.70 per unit sold Fixed selling and administrative expenses $ 52,000 (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $109.90 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Rundle 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. Reg A Year 2 Reg 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 intermediate calculation RUNDLE MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 2 Cost of Goods Sold: Complete this question by entering your answers in the tabs below. Req 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 calculation RUNDLE MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 3 Cost of Goods Sold: a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Rundle 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. Req A Year 2 Req A Year 3 ReqB Reg D Req E Year 2 Reg E Year 3 Since Levine sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3? Why did net income increase in Year 3? Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Rundle 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. Reg A Year 2 Reg A Year 3 ReqB ReqD Reg E Year 2 Req E Year 3 Determine the costs of ending inventory for Year 3. (Do not round intermediate calculations.) Ending inventory Reg A Year 2 Reg A Year 3 Req B Reg D Req E Year 2 Req E Year 3 Prepare income statements based on variable costing for Year 2. (Do not round intermediate calculations. RUNDLE MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, Year 2 Variable costs: Complete this question by entering your answers in the tabs below. Reg A Year 2 Req A Year 3 Req B Req D Req E Year 2 Req E Year 3 Prepare income statements based on variable costing for Year 3. (Do not round intermediate calculations RUNDLE MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, Year 3 Variable costs
