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Wildhorse Motors is a division of Wildhorse Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Wildhorse Motors is a division of Wildhorse Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Nancy Jackson is the division manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory 0 Expected sales in units 210.000 Selling price per unit $8.00 Variable manufacturing cost per unit $2.30 Fixed manufacturing cost (total) $504,000 Fixed manufacturing overhead costs per unit Based on 210.000 units $2.40 per unit ($504,000 + 210,000) Based on 240.000 units $2.10 per unit ($504,000 + 240,000) Manufacturing cost per unit Based on 210,000 units $4.70 per unit ($2.30 variable + $2.40 fixed) Based on 240,000 units $4.40 per unit ($2.30 variable + $2.10 fixed) Variable selling and administrative expenses $0.35 per unit Fixed selling and administrative expenses (total) $12,000 Prepare an absorption-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. Que Accou WILDHORSEMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing 240,000 Que: Accou Units produced 210,000 Units sold 210000 210000 Ques Accour Sales $ 1680000 $ 1680000 Ques Accoun Less Cost of goods sold Gross profit Ques Accoun Less Selling and administrative expenses Net income $ $ Viewi Accoun e Textbook and Media
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