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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

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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 $ 9. Fixed Manufacturing Overhead $6 per unit ooooo $100,000 per year $4 $4 per unit Selling & Administrative Costs Per Year $2 per unit 45,00 Fixed per $0 per unit so per unite year Direct Direct labor Direct materials Direct labor Variable overhead overhead variable Variable per 85,000 Sales Price Variable per 100 Dav limit! selling Price = $100 per unit year I callinn Drina Sales Price Selling Price $100 Per Unit Units Produced vs Units Sold Units Sold 7500 units 10,000 units Units Produced 1,000 2,000 3,000 4,000 5,000 Units 6,000 7,000 8,000 9,000 10,000 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? Reg 1 Req 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 WWW Net income (loss) a Prepare an income statement for the year using absorption costing. WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 TTTTTT 1 TL IT TTTTTTT IT 1 Net income (loss) 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 A 3. Which costing method would the manager prefer in the current year? 4. Which costing method would the manager prefer in the current year

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