Answer complete question please otherwise skip it,. Answer in text form without image Walton Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years,the company maintained the same cost structure to manufacture its products.Units Produced4,0006,000YearProduction and SalesYear 2Year 3Cost DataDirect materialsDirect laborManufacturing overhead-variableManufacturing overhead-fixedUnits Sold4,0004,000$13.80 per unit$22.80 per unit.$ 11.00 per unit$ 102,600Variable selling and administrative$ 7.20 per unit soldexpensesFixed selling and administrative expenses$ 57,000(Assume that selling and administrative expenses are associated with goods sold.)Walton sells its products for $109.70 per unit.Requireda. Prepare income statements based on absorption costing for Year 2 and Year 3.b. Since Walton sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3.d. Determine the costs of ending inventory for Year 3.e. Prepare income statements based on variable costing for Year 2 and Year 3.

The income statement can be prepared using various methods as variable and absorption costing. Using…

Walton Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products. Units Produced 4,000 6,000 Year Production and Sales Year 2 Year 3 Cost Data Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Variable selling and administrative expenses Fixed selling and administrative expenses Units Sold 4,000 4,000 $ 13.80 per unit $ 22.80 per unit $ 11.00 per unit $ 102,600 $ 7.20 per unit sold $ 57,000 (Assume that selling and administrative expenses are associated with goods sold.) Waiton sells its products for $109.70 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Walton sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3. d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 and Year 3.

Walton Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products. Units Produced 4,000 6,000 Year Production and Sales Year 2 Year 3 Cost Data Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Variable selling and administrative expenses Fixed selling and administrative expenses Units Sold 4,000 4,000 $ 13.80 per unit $ 22.80 per unit $ 11.00 per unit $ 102,600 $ 7.20 per unit sold $ 57,000 (Assume that selling and administrative expenses are associated with goods sold.) Waiton sells its products for $109.70 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Walton sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3. d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 and Year 3.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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