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 Produced Units Sold 4, eee 6, eae 4,000 4,800 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 $ 13.20 per unit $ 23.70 per unit $ 11.40 per unit $102,000 $ 8.30 per unit sold $ 60,00 (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $108.10 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Year 3 ReqB ReqD Reg E Vear 2 Reg E Vear 3 Prepare income statements based on absorption costing for Year 2. (Do not round intermediate calculations.) RUNDLE MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 2 Revenues Cost of Goods Sold: Direct labor Direct materials Manufacturing overhead OOO 0 > Gross margin Selling and administrative expenses Net income > IS 0 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 Produced Units Sold 4,000 6,690 4,eee 4,899 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 $ 13.20 per unit $ 23.70 per unit $ 11.4e per unit $102,000 $ 8.30 per unit sold $ 60, eee (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $108.10 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Vear 3 Reg B Reg D Reg E Vear 2 Req E Vear 3 Prepare income statements based on absorption costing for Year 3. (Do not round intermediate calculations.) RUNDLE MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, Year 3 Revenues Cost of Goods Sold: Direct labor Direct materials Manufacturing overhead os 0 0 Gross margin Selling and administrative expenses > Net income > IS 0 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 Produced Units Sold 4,00 6, Bee 4,000 4, eee 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 $ 13.20 per unit $ 23.70 per unit $ 11.40 per unit $102,00 $ 8.38 per unit sold $ 60, ese (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $108.10 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Vear 3 Reg B Reg D Reg E Vear 2 Reg E Vear 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? Decrease in fixed manufacturing cost 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 Produced Units Sold 4,690 6,800 4, eee 4,888 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 $ 13.20 per unit $ 23.70 per unit $ 11.40 per unit $102,000 $ 8.30 per unit sold $ 60, eae (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $108.10 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Vear 3 Reg B RegD Reg E Vear 2 Reg E Vear 3 Determine the costs of ending inventory for Year 3. (Do not round intermediate calculations.) Ending inventory 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 Produced Units Sold 4,60e 6, eee 4,888 4,000 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 $ 13.20 per unit $ 23.70 per unit $ 11.40 per unit $102,00 $ 8.30 per unit sold $ 60,000 (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $108.10 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Year 2 Reg A Vear 3 ReqB Reg D Reg E Vear 2 Reg 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 Revenues Variable costs: Direct labor Direct materials Variable manufacturing overhead Variable selling and administrative expenses OOOO 0 0 Contribution margin Fixed selling and administrative expenses Fixed manufacturing overhead OO Units Produced Units Sold 4.ee 6,000 4,800 4,000 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 $ 13.20 per unit $ 23.72 per unit $ 11.40 per unit $102,000 $ 8.30 per unit sold $ 60,000 (Assume that selling and administrative expenses are associated with goods sold.) Rundle sells its products for $108.10 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. c. Prepare income statements based on variable costing for Year 2 and Year 3. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Year 2 Reg A Year 3 ReqB RegD Reg E Vear 2 Reg E Vear 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 Revenues Variable costs: Direct labor Direct materials Variable manufacturing overhead Variable selling and administrative expenses ISIO 0 Contribution margin Fixed selling and administrative expenses Fixed manufacturing overhead Net Income S 0