Solomon Company incurred manufacturing overhead cost for the year as follows.

References

The company produced $1,100$ units and sold $600$ of them at $$181\mathrm{.}90$ per unit. Assume that the production manager is paid a $3$ percent

bonus based on the company's net income.

Required

a$.$ Prepare an income statement using absorption costing.

b$.$ Prepare an income statement using variable costing.

c$.$ Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting?

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required B

Prepare an income statement using absorption costing.