Central Avenue Manufacturing, Inc. began operations on January 1, 2020. The company uses actual costing and...

  

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Central Avenue Manufacturing, Inc. began operations on January 1, 2020. The company uses actual costing and does not generally carry Work in Process Inventories at the end of the year. Variable product costs per unit were the same for 2020, 2021 and 2022 and total $75 per unit. Total Fixed Overhead Costs are $954,000 per year. Variable Selling and Administrative Costs are $14 for each unit sold. Fixed Selling and Administrative Costs are $456,000 per year. The Selling Price is $105 per unit for all three years. Production and Sales figures (in units) for three years are below. Production (units) Sales (units) units 2020 100,000 units TASKINGS: 2021 95,000 units 2022 106,000 units 95,000 units The company uses the FIFO method to assign cost to any units left in ending Finished Goods Inventory. 95,400 units 110,000 B. Repeat part A - only do it for 2022 instead of 2021. A. Prepare, in good form, two Income Statements for 2021: One using Absorption Costing and one using Variable Costing. Use the formats that I used in the class Then, prepare a Reconciliation to explain the difference in the Net Income figures. Again, use the format that I used in the class example. example for Chapter 6. A) absorption Central Avenue Manufacturing Inc. For the year WW Sales beg FG inv. + COGM GAFS - end FG inv COGS GP Vsta Fs+a total operating exp. NOI B) sales beg FG inv. +COGM GAFS - end FG Inv. 2021 COGS GP V sta F sta total operating exp. NOI 1.330,000 456,000 absorption Central avenue manfacturing inc. For the year 2022 10,500,000 8,824,000 1,671,000 - 115,000 Central avenue manufacturing inc. 2021 For the year Sales beg. FG inv +COGM GAFS -end FG variable V COGS total -Vs+a contribution margin FOH F sta total fixed costs NOT sales beg. FG inv. + COGM GAFS end FG variable Central avenue manufacturing inc. for the year 2022 V COGS total - V sta Contribution margin FOH F sta total fixed costs NOI Central Avenue Manufacturing, Inc. began operations on January 1, 2020. The company uses actual costing and does not generally carry Work in Process Inventories at the end of the year. Variable product costs per unit were the same for 2020, 2021 and 2022 and total $75 per unit. Total Fixed Overhead Costs are $954,000 per year. Variable Selling and Administrative Costs are $14 for each unit sold. Fixed Selling and Administrative Costs are $456,000 per year. The Selling Price is $105 per unit for all three years. Production and Sales figures (in units) for three years are below. Production (units) Sales (units) units 2020 100,000 units TASKINGS: 2021 95,000 units 2022 106,000 units 95,000 units The company uses the FIFO method to assign cost to any units left in ending Finished Goods Inventory. 95,400 units 110,000 B. Repeat part A - only do it for 2022 instead of 2021. A. Prepare, in good form, two Income Statements for 2021: One using Absorption Costing and one using Variable Costing. Use the formats that I used in the class Then, prepare a Reconciliation to explain the difference in the Net Income figures. Again, use the format that I used in the class example. example for Chapter 6. A) absorption Central Avenue Manufacturing Inc. For the year WW Sales beg FG inv. + COGM GAFS - end FG inv COGS GP Vsta Fs+a total operating exp. NOI B) sales beg FG inv. +COGM GAFS - end FG Inv. 2021 COGS GP V sta F sta total operating exp. NOI 1.330,000 456,000 absorption Central avenue manfacturing inc. For the year 2022 10,500,000 8,824,000 1,671,000 - 115,000 Central avenue manufacturing inc. 2021 For the year Sales beg. FG inv +COGM GAFS -end FG variable V COGS total -Vs+a contribution margin FOH F sta total fixed costs NOT sales beg. FG inv. + COGM GAFS end FG variable Central avenue manufacturing inc. for the year 2022 V COGS total - V sta Contribution margin FOH F sta total fixed costs NOI