Waltman Co. just ended its first year of operations. We are hired to help with the company's reporting.

Sales price: 100 per unit

Fixed Manufacturing OH: 100,000

Variable Manufacturing costs:

Direct Materials: 7 per unit

Direct labor: 9 per unit

variable OH: 4 per unit

Selling & Admin costs:

fixed: 45,000

variable: 85,000

unit sold: 7,5000

units produced 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 managers bonus is based on net income, which costing method would the manager prefer in the current year? 4. Assuming the managers bonus is tied to minimizing ending inventory, which costing method would the manager prefer in the current year?

Req 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?