Scott Manufacturing makes only one product with total unt manufacturing costs of $59, of which $41 es variable. No units were on hand at the beginning of 2015. During 2015 and 2016 the only product manufactured vias sold for 3 perunt, and the cost structure did not change. Scott uses the first in first out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 2015 120,000,000 120.000 10000 a. Prepare gross profit computations for 2015 and 2016 using abtorption costing Do not use negative is with your answers Absorption costing 2016 $ 170.000 12.090.000 Cost of Dery 0 1.770,000 Production 7,000,000 7.000.000 Good 7.000.000 000 esinde vetor 770,000 100,000 Cost of gods sold $310.000 7470.000 1.000.0004420.000 0. Prepare gross profit computation for 2015 and 2016 uthy Variable costing Do not use native signs with your answers Variable COMING 2016 00012,00 Vecot tegninger O 1,200.000 2000 4320000 Go 420.000 150.000 End Oy (1200MM 120.000 When 2015 2016 Units Manufactured Units Sold 120,000 90,000 120,000 130,000 a. Prepare gross profit computations for 2015 and 2016 using absorption costing. Do not use negative signs with your answers. Absorption Costing 2015 2016 Sales $ 8,370,000 $ 12,090,000 Cost of goods sold: Beginning inventory 1,770,000 Production 7,080,000 7,080,000 Goods available 7,080,000 8,850,000 Less: Ending inventory (1,770,000) * (1,180,000) Cost of goods sold 5,310,000 7,670,000 Gross profit $ 3,060,000 $4,420,000 0 b. Prepare gross profit computations for 2015 and 2016 using variable costing, Do not use negative signs with your answers. Variable Costing 2015 2016 Sales $ 8,370,000 $ 12,090,000 Variable cost of goods sold: Beginning inventory 1,230,000 Production 4.920,000 4,920,000 Goods available 4,920,000 6,150,000 Less: Ending inventory (1,230,000) (820,000) Variable cost of goods sold Less: Fixed manufacturing costs Gross profit $ 4,680,000 * $ 6,760,000 x 0 OX OX OX