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2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out; in other words, assumes the newest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. . Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Prepare an income statement for Year 1, Year 2, and Year 3.

2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out; in other words, assumes the newest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. . Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Prepare an income statement for Year 1, Year 2, and Year 3.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help with 2A and 2B please

2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out; in other words, it assumes the newest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Req 2A Prepare an income statement for Year 1, Year 2, and Year 3. Variable expenses: Req 2B Total variable expenses Fixed expenses: Total fixed expenses O'Brien Company Variable Costing Income Statement Year 1 $ 0 0 0 0 $ Year 2 0 0 0 $ Year 3 0 0 0 0
Transcribed Image Text:2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out; in other words, it assumes the newest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Req 2A Prepare an income statement for Year 1, Year 2, and Year 3. Variable expenses: Req 2B Total variable expenses Fixed expenses: Total fixed expenses O'Brien Company Variable Costing Income Statement Year 1 $ 0 0 0 0 $ Year 2 0 0 0 $ Year 3 0 0 0 0
O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Case 6-29 Part-1 (Algo) $26 $14 $6 $ 3 During its first year of operations, O'Brien produced 97,000 units and sold 73,000 units. During its second year of operations, it produced 76,000 units and sold 95,000 units. In its third year, O'Brien produced 88,000 units and sold 83,000 units. The selling price of the company's product is $74 per unit. $ 550,000 $ 190,000 a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out; in other words, it assumes the oldest units in inventory are sold first):
Transcribed Image Text:O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Case 6-29 Part-1 (Algo) $26 $14 $6 $ 3 During its first year of operations, O'Brien produced 97,000 units and sold 73,000 units. During its second year of operations, it produced 76,000 units and sold 95,000 units. In its third year, O'Brien produced 88,000 units and sold 83,000 units. The selling price of the company's product is $74 per unit. $ 550,000 $ 190,000 a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out; in other words, it assumes the oldest units in inventory are sold first):
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