table Costing Assignment i Sed Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter tannually produces and sells 44.400 tons of its granular Because of this year's mild winter, projected demand for its product is only 37000 tons. Based on projected production and sales of 37.000 tons, the company estimates the following income using absorption costing Sales (7.00 tons at $59 per ton costo od Sold 37 000 tons at $50 per ton) Grass Profit Selline and administrative expenses Income $ 2.183,000 1,850,000 333,000 333,00 $ @ Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expens vel equipment Direct materials Direct labor Variable overhead Fixed overhead 5666 098/37.000 tons S 14 per ton S 14 per ton $ 4 per ton S 18 per ton Selling and administrative expenses consist of variable selling and administrative expenses of $3 per ton and fixed selling and administrative expenses of $222.000 per year. The company's president will not earn a bonus unless a positive income is reported The controllen mentions that because the company has large storage capacity, it can report a positive income by setting production at the usual 44.400 ton level even though it expects to sell only 37.000 tons. The president is surprised that the company can report income by producing more without increasing sales, Required: 1. Prepare an income statement using absorption costing based on production of 44.400 tons and sales of 37.000 tons. Can the company report a positive income by increasing production to 44.400 tons and storing the 7.400 tons of excess production in Inventory 2. By how much does income increase by when producing 44,400 tons and storing 7400 tons in inventory compared to only producing 37.000 tons? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Se production Hon level even though it expects to sell only 37.000 tons. The president is surprised that the company can report income by producing more without increasing sales. Required: 1. Prepare an Income statement using absorption costing based on production of 44.400 tons and sales of 37,000 tons. Can the company report a positive income by increasing production to 44.400 tons and storing the 7.400 tons of excess production in inventory? 2. By how much does income increase by when producing 44,400 tons and storing 7,400 tons in inventory compared to only producing 37.000 tons? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement using absorption costing based on production of 44,400 tons and sales of 37,000 tons. Can the company report a positive income by increasing production to 44,400 tons and storing the 7,400 tons of excess production in inventory? (Round your answers to the nearest whole dollar.) BLAZER CHEMICAL Income Statement (Absorption Costing) 0 $ 0 Did the company report a positive income? che Required 2 >
