Variable $ 10 . 70/unit Fixed ($19.00/unit for 1, 090 units) $ 19,090 Variable selling and administrative expenses $ 3, 650 Fixed selling and administrative expenses $ 14, 800 The company produced 1,000 units and sold 500 of them at $180.70 per unit. Assume that the production manager is paid a 2 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 C Prepare an income statement using absorption costing. SOLOMON COMPANY Income Statement (Absorption Costing) Cost of goods Sold Required B >Solomon Company incurred manufacturing overhead cost for the year as follows. Direct materials 39 .70/unit Direct labor $ 27 . 50/unit Manufacturing overhead Variable $ 10.70/unit Fixed ($19 . 08/unit for 1, 600 units) $ 19, 090 Variable selling and administrative expenses $ 3, 650 Fixed selling and administrative expenses $ 14, 860 The company produced 1,000 units and sold 500 of them at $180.70 per unit, Assume that the production manager is paid a 2 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 C Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended? Variable $ 16. 70/ unit Fixed ($19. 60/ unit for 1, 600 units) $ 19, 090 Variable selling and administrative expenses $ 3, 650 Fixed selling and administrative expenses $ 14, 806 The company produced 1,000 units and sold 500 of them at $180.70 per unit. Assume that the production manager is paid a 2 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 C Prepare an income statement using variable costing SOLOMON COMPANY Income Statement Variable Costing) Variable costs Solomon Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39. 70/ unit Direct labor $ 27 . 50/unit Manufacturing overhead Variable $ 10.70/unit Fixed ($19.00/unit for 1, 090 units) $ 19,000 Variable selling and administrative expenses $ 3, 650 Fixed selling and administrative expenses $ 14, 800 The company produced 1,000 units and sold 500 of them at $180.70 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Required . 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 C Prepare an income statement using absorption costing SOLOMON COMPANY Income Statement (Absorption Costing) Cost of goods SoldThe following information pertains to Jordan Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 124, 400 Work in process 119, 800 Finished goods 77,900 March 31 Inventory balances Raw materials $ 86,300 Work in process 146, 500 Finished goods 81,900 During March Costs of raw materials purchased $ 118, 790 Costs of direct labor 101, 090 Costs of manufacturing overhead 61, 900 Sales revenues 353, 000 Required a. Prepare a schedule of cost of goods manufactured and sold. b. Calculate the amount of gross margin on the income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of cost of goods manufactured and sold JORDAN MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold For March Year 3 Beginning raw materials inventory Raw materials available for use Direct raw materials usedThe following information pertains to Jordan Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $124,406 Work in process 119 , 800 Finished goods 77 900 March 31 Inventory balances Raw materials $ 86, 300 Work in process 146, 500 Finished goods 81,909 During March Costs of raw materials purchased $ 118, 760 Costs of direct labor 101, 900 Costs of manufacturing overhead 61,900 sales revenues 353, 000 Required a. Prepare a schedule of cost of goods manufactured and sold. b. Calculate the amount of gross margin on the income statement. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the amount of gross margin on the income statement. Gross margin