Tableau DA 6-3: Mini-Case, Income reporting under absorption costing and variable costing LO P2 Waltman Co. just ended its first year of operations. We are hired to help with the company's reporting. The Tableau Dashboard provides data for our analysis. Variable Manufacturing Costs $10 per unit Fixed Manufacturing Overhead $8 per unit $6 per unit ooooo $4 per unit Selling & Administrative Costs Per Year Valable Manufacturing Costs $10 per unit Fixed Manufacturing Overhead $8 per unit $6 per unit ooooo $4 per unit Variable Manufacturing Costs Direct materials: $7 per unit Selling & Administrative Costs Per Year $2 per unit Fixed $0 per unit Direct Direct labor Variable Variable Manufacturing Costs $10 per unit Fixed Manufacturing Overhead $8 per unit $6 per unit (Ooooo $4 per unit Variable Manufacturing Costs Dm Selling & Administrative g o Administrativ Direct labor: $9 per unit Costs Per Year $2 per unit $0 per unit Fixed Direct Direct labor Variable Variable Manufacturing Costs $10 per unit Fixed Manufacturing Overhead $8 per unit $6 per unit OOooo $4 per unit - Selling & Administrative Costs Per Year $2 per unit Variable Manufacturing Costs Variable overhead: $4 per unit Fixed $0 per unit Direct Direct labor Variable 00000 Selling & Administrative Costs Per Year Fixed Wariable Selling & Administrative Costs Variable: $85,000 per year s Units Sold (00000 Selling & Administrative Costs Per Year Fixed Selling & Administrative Costs Fixed: $45,000 per year Variable ys Units Sold Variable Sales Price Selling Price $100 Per Unit Units Produced vs Units Sold Selling Price $100 Per Unit Units Produced vs Units Sold Units Sold Units Produced Units Produced vs Units Sold Units Sold: 7,500 units 0 1,000 2,000 3,000 4,000 9,000 10,000 5,000 Units tableau 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the cu 4. Assuming the manager's bonus is tied to minimizing ending inventory, which costing method would the manager i current year? ences Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 and 4 Prepare an income statement for the year using variable costing. ts Sold L.Units Produced Units Produced vs Units Sold Units Produced: 10,000 units 7,000 ing. osting method would the manager prefer in the current year? intory, which costing method would the manager prefer in the 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is tied to minimizing ending inventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 and 4 Prepare an income statement for the year using variable costing. WALTMAN CO. Income Statement (Variable Costing) For Year Ended December 31 Net income (loss) Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using absorption costing:......... WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 Net income (loss) - Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the currer 4. Assuming the manager's bonus is tied to minimizing ending inventory, which costing method would the manager prefe current year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 and 4 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is tied to minimizing ending inventory, which costing method would the manager prefer in the current year? Show less 3. Which costing method would the manager prefer in the current year? 4. Which costing method would the manager prefer in the current year? s would the manager prater in the current year? & Req 2 Req 3 and
