45. La Z Boy, Inc., a manufacturer of chairs, began operations on October 1 of...
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Accounting
45. La Z Boy, Inc., a manufacturer of chairs, began operations on October 1 of the current year. During this time, the company produced 40,000 units and sold 20,000 units at a sales price of $400 per unit. Cost information for this year is shown in the following table: Production costs Direct materials Direct labor Variable overhead Fixed overhead Nonproduction costs Variable selling and administrative Fixed selling and administrative $85 per unit $65 per unit $200,000 in total $350,000 in total $90,000 in total $500,000 in total Given the information above, what is net income using variable costing and present this in a statement in good format. Use a separate sheet of paper and prepare it by hand, no spreadsheets. (7 points) Given the information above, what is net income using absorption costing and present this in a statement in good format. Use a separate sheet of paper and prepare it by hand, no spreadsheets. (7 points)
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