Spencer Electronics produces a wireless home lighting device that allows consumers to turn on home lights from their cars and light a safe path into and through their homes. Information on the first three years of business is as follows:
				2011	2012	2013	Total
Units sold				15,000	15,000	15,000	45,000
Units produced				15,000	20,000	10,000	45,000
Fixed production costs				$750,000	$750,000	$750,000
Variable production costs per unit				150	150	150
Selling price per unit				250	250	250
Fixed selling and administrative expense				220,000	220,000	220,000
Required:
Part a: Calculate profit and the value of ending inventory for each year using full costing.
				2011	2012	2013
	Fixed manufacturing overhead			Amount	Amount	Amount
	Divided by ???			Number	Number	Number
	Title			Formula	Formula	Formula
	Title			Amount	Amount	Amount
	Full cost per unit			Formula	Formula	Formula
	Sales			Amount	Amount	Amount
	Less cost of goods sold:
	2008			Formula
	2009				Formula
	2010					Formula
	Gross margin			Amount	Amount	Amount
	Less ???			Amount	Amount	Amount
	Net income			Formula	Formula	Formula	Formula
	Ending inventory 2008			Formula
	Ending inventory 2009				Formula
	Ending inventory 2010					Formula
Part b: Explain why profit fluctuates from year to year even though the number of units sold, the selling price, and the cost of structure remain constant.
Enter text answer here.
Part c: Calculate profit and the value of ending inventory for each year using variable costing.
				2011	2012	2013
	Fixed manufacturing overhead			Amount	Amount	Amount
	Title			Amount	Amount	Amount
	Units sold			Amount	Amount	Amount
	Selling price per unit			Value	Value	Value
	Sales			Formula	Formula	Formula
	Less ???			Amount	Amount	Amount
	Title			Formula	Formula	Formula
	Less fixed costs:
	Title			Amount	Amount	Amount
	Title			Amount	Amount	Amount
	Title			Formula	Formula	Formula	Formula
	Ending inventory 2008			Amount
	Ending inventory 2009				Amount
	Ending inventory 2010					Amount