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Waltman Company just ended its first year of operations

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Waltman Company just ended its first year of operations. We are hired to help with the company's reporting. The Tableau Dashboard provides data for our analysis. Variable Manufacturing Costs Fixed Overhead Costs Per Year $10 per unit $8 per unit $6 per unit (Ooooo $4 per unit Selling & Administrative Costs Per Year $2 per unit m Fixed $0 per unit Direct labor Direct materials Variable overhead Variable Sales Price Selling Price $100 Per Unit Units Produced vs Units Sold Units Sold Units Produced 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 and 4 Prepare an income statement for the year using variable costing. $ 750,000 WALTMAN CO. Income Statement (Variable Costing) For Year Ended December 31 Sales Less: Variable costs Direct materials $ 52,500 Direct labor 67,500 Variable overhead costs 30,000 85,000 Variable selling and administrative expenses Total variable costs Contribution margin 235,000 515,000 100,000 45,000 Fixed overhead costs Fixed selling and administrative costs Total fixed expenses Income 145,000 370,000 $ Req 1 Req 2 Req 3 and 4 Req 2 Prepare an income statement for the year using absorption costing. $ 750,000 WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 Sales Less: Cost of goods sold Direct materials $ 52,500 Direct labor 67,500 Variable overhead costs 30,000 Fixed overhead costs 75,000 Cost of goods sold Gross profit 225,000 525,000 Variable selling and administrative expenses Fixed selling and administrative costs Total selling, general and administrative expenses 85,000 45,000 130,000 $ 395,000 Income Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? Show less 3. Which costing method would the manager prefer in the current year? Which costing method would the manager prefer in the current year? Absorption Costing Variable Costing 4.

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