question archive Borunda Corporation has provided the following data for its two most recent years of operation: Selling price per unit $83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year $9 $7 $3 $360,000 $6 $77,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 0 10,000 8,000 2,000 Year 2 2,000 12,000 12,000 2,000 Required: a
Borunda Corporation has provided the following data for its two most recent years of operation: Selling price per unit $83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year $9 $7 $3 $360,000 $6 $77,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 0 10,000 8,000 2,000 Year 2 2,000 12,000 12,000 2,000 Required: a
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Borunda Corporation has provided the following data for its two most recent years of operation: Selling price per unit $83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year $9 $7 $3 $360,000 $6 $77,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 0 10,000 8,000 2,000 Year 2 2,000 12,000 12,000 2,000 Required: a. Assume the company uses absorption costing. Prepare an income statement for each year. b. Assume the company uses variable costing. Prepare an income statement for each year. c. Prepare a report in good form reconciling the variable costing and absorption costing net incomes.
