TruMark Company produces and sells a single product, a child's toy popular in the 1960's. Select...

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TruMark Company produces and sells a single product, a child's toy popular in the 1960's. Select cost and operating data relating to the product for two years are given below: Selling price per unit $30 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $12 Direct labor $ 4 Variable manufacturing overhead $ 2 Fixed manufacturing overhead per year $80,000 Selling and Administrative expenses: Variable selling and administrative expense per unit sold $ 1.50 Fixed selling and administrative expenses $25,000 Year 1 Year 2 Units in beginning inventory 9,000 Units produced during the year 20,000 8,000 Units sold during the year 11,000 17,000 Units in ending inventory 9,000 1. Assume the company uses Variable Costing: a. Compute the unit product cost in each year. Show your work for partial credit purposes. b. Prepare an income statement for each vear. A partially completed template is provided for ar use. Please label appropriate rows which are missing. No data should be entered into the gray boxes. Year 2 Year 1 Sales $ Less: Variable Expenses: (enter label) Less: Fixed Expenses: = Net Operating Income 2. Now assume that the company uses Absorption Costing: Compute the unit product cost in each year. Show your work for partial credit purposes. с. d. Prepare an income statement for each year. A partially completed template is provided for your use. Please label appropriate rows which are missing. Year 1 Year 2 Sales Less: Cost of Goods Sold** (enter label) Less: Selling & Administrative Expenses (enter label) 2$ ** remember to consider any beginning inventory in Year 2 when doing this calculation TruMark Company produces and sells a single product, a child's toy popular in the 1960's. Select cost and operating data relating to the product for two years are given below: Selling price per unit $30 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $12 Direct labor $ 4 Variable manufacturing overhead $ 2 Fixed manufacturing overhead per year $80,000 Selling and Administrative expenses: Variable selling and administrative expense per unit sold $ 1.50 Fixed selling and administrative expenses $25,000 Year 1 Year 2 Units in beginning inventory 9,000 Units produced during the year 20,000 8,000 Units sold during the year 11,000 17,000 Units in ending inventory 9,000 1. Assume the company uses Variable Costing: a. Compute the unit product cost in each year. Show your work for partial credit purposes. b. Prepare an income statement for each vear. A partially completed template is provided for ar use. Please label appropriate rows which are missing. No data should be entered into the gray boxes. Year 2 Year 1 Sales $ Less: Variable Expenses: (enter label) Less: Fixed Expenses: = Net Operating Income 2. Now assume that the company uses Absorption Costing: Compute the unit product cost in each year. Show your work for partial credit purposes. с. d. Prepare an income statement for each year. A partially completed template is provided for your use. Please label appropriate rows which are missing. Year 1 Year 2 Sales Less: Cost of Goods Sold** (enter label) Less: Selling & Administrative Expenses (enter label) 2$ ** remember to consider any beginning inventory in Year 2 when doing this calculation

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1 Variable Costing Year Year 2 Direct material 12 12 Direc... View the full answer