Waterway Corp. is a manufacturer of specialty in-line skates. The operating results for 2022 are as follows:

Units produced		19,500	pairs
Units sold		18,000	pairs
Selling price		$215.00	per pair

Production information:
Direct materials		$975,000
Direct labour		721,500
Variable manufacturing overhead		429,000
Fixed manufacturing overhead		809,250
Variable marketing costs		180,000
Fixed marketing costs		208,350

There was no beginning finished goods inventory.

A)Prepare an absorption-costing income statement. Fill in blanks(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

Fill in blanks

Prepare a variable-costing income statement. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

Fill in the blanks

Reconcile the net incomes under absorption costing and variable costing.

Variable-costing net income		$enter a dollar amount
Fixed MOH deferred in ending inventory		$enter a dollar amount
Absorption-costing net income		$enter a total amount

Calculate the break-even point in sales units (pairs of skates) under the current cost structure.

Break-even point

enter the break-even point in units

units

WATERWAY Corp. Income Statement Absorption Costing Production in units Sales in units $