Wildhorse Manufacturing produces basketballs used for indoor and outdoor games. The company has had significant troubles over the past few years, as the number of competitors in the basketball market has increased dramatically. Recently, the company was forced to cut back production in order to reduce its rising inventory level. The following is a list of costs for the company in 2022:

Variable costs per unit
Rubber		$2.85
Other materialsindirect		1.40
Ball makersdirect labour		5.60
Factory electricity usage		0.40
Factory water usage		0.15
Other labourindirect		0.25
Selling and administrative expenses		0.40
Fixed costs per year
Factory property taxes		$134,225
Factory sewer usage		56,000
Factory electricity usage		44,800
Selling and administrative expenses		92,960

Wildhorse Manufacturing had an ending inventory of 95,200 basketballs in 2021. For these units, the fixed manufacturing overhead cost was $4.00 per unit and variable manufacturing costs were $9.67 per unit. In 2022, the company produced 39,500 basketballs, sold 81,200 basketballs, and had an ending inventory of 53,500 basketballs. The basketballs sold for $19.00 each. Wildhorse uses the FIFO method.

Prepare a throughput-costing income statement for 2022. Assume that increased costs in 2022 are related to variable costs other than materials. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

WILDHORSEMANUFACTURING Throughput Costing-Income Statement choose the accounting period December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
Sales in units				enter a number of units
select an income statement item Fixed manufacturing, selling and administrative costsBeginning inventoryThroughput contribution marginOperating expensesVariable selling and administrative expenseThroughput cost of goods soldNet income before taxVariable cost of goods soldSalesEnding inventory				$enter a dollar amount
select between addition and deduction LessAdd: select an income statement item Throughput cost of goods soldOperating expensesBeginning inventoryVariable selling and administrative expenseFixed manufacturing, selling and administrative costsThroughput contribution marginSalesVariable cost of goods soldNet income before taxEnding inventory				enter a dollar amount
select a summarizing line for the first part Operating expensesVariable cost of goods soldSalesFixed manufacturing, selling and administrative costsBeginning inventoryThroughput cost of goods soldThroughput contribution marginEnding inventoryNet income before taxVariable selling and administrative expense				enter a total amount for the first part
select an opening section name AddLess: select an opening section name Throughput cost of goods soldVariable selling and administrative expenseNet income before taxOperating expensesSalesThroughput contribution marginEnding inventoryVariable cost of goods soldFixed manufacturing, selling and administrative costsBeginning inventory
select an income statement item Throughput contribution marginBeginning inventoryVariable cost of goods soldSalesThroughput cost of goods soldOperating expensesEnding inventoryFixed manufacturing, selling and administrative costsVariable selling and administrative expenseNet income before tax		$enter a dollar amount
select an income statement item Ending inventoryVariable cost of goods soldNet income before taxThroughput contribution marginSalesVariable selling and administrative expenseOperating expensesFixed manufacturing, selling and administrative costsBeginning inventoryThroughput cost of goods sold		enter a dollar amount
select an income statement item Operating expensesVariable selling and administrative expenseNet income before taxEnding inventoryBeginning inventoryVariable cost of goods soldThroughput contribution marginSalesFixed manufacturing, selling and administrative costsThroughput cost of goods sold		enter a dollar amount
				enter a subtotal of the three previous amounts
select a closing name for this statement Net income before taxSalesVariable selling and administrative expenseFixed manufacturing, selling and administrative costsThroughput cost of goods soldThroughput contribution marginVariable cost of goods soldOperating expensesEnding inventoryBeginning inventory				$enter a total amount for this statement

Calculate Wildhorse manufacturing cost per unit under absorption costing. (Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.)

		2021		2022
Manufacturing cost		$enter a dollar amount per unit rounded to 2 decimal places per unit		$enter a dollar amount per unit rounded to 2 decimal places per unit

Prepare an absorption-costing income statement for 2022.

Wildhorse chief financial officer, Mr. Daniel, is contemplating the benefits of using the absorption-costing and variable-costing approaches. He has asked you to perform a variety of tasks to help him analyze the differences between the two approaches: 1. Reconcile the differences between the income values of the two approaches.

Reconciliation of net income
Variable-costing net income		$enter a dollar amount
FMOH deferred in ending inventory		enter a dollar amount
FMOH released from beginning inventory		enter a dollar amount
Absorption-costing net income		$enter a total amount

2. Mr. Daniel has heard that some basic managerial tasks can be better performed when variable costing is used. Calculate the break-even point in units for the company in 2022 using the variable-costing data. (Round answer to 0 decimal places, e.g. 5,275.)

Break-even point

enter the break-even point in units rounded to 0 decimal places

units