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3. Hi-Tech manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable Manufacturing Overhead Variable Selling and Administrative expense Fixed Cost Per Year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $15 $5 $5 $250,000 $80,000 During its first year of operations, Hi-Tech produced 50,000 units and sold 35,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is Tk.80 per unit. Required: I. Assume the company uses variable costing: Prepare the appropriate income statement for Year 1 and Year 2.0 II. Assume the company uses absorption costing: Prepare the appropriate income statement for Year 1 and Year 2. III. Prepare reconciliation statement for Year 1 and Year 2.

3. Hi-Tech manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable Manufacturing Overhead Variable Selling and Administrative expense Fixed Cost Per Year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $15 $5 $5 $250,000 $80,000 During its first year of operations, Hi-Tech produced 50,000 units and sold 35,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is Tk.80 per unit. Required: I. Assume the company uses variable costing: Prepare the appropriate income statement for Year 1 and Year 2.0 II. Assume the company uses absorption costing: Prepare the appropriate income statement for Year 1 and Year 2. III. Prepare reconciliation statement for Year 1 and Year 2.

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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3. Hi-Tech manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable Manufacturing Overhead Variable Selling and Administrative expense Fixed Cost Per Year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $15 $5 $5 $250,000 $80,000 During its first year of operations, Hi-Tech produced 50,000 units and sold 35,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is Tk.80 per unit. Required: I. Assume the company uses variable costing: Prepare the appropriate income statement for Year 1 and Year 2.0 II. Assume the company uses absorption costing: Prepare the appropriate income statement for Year 1 and Year 2. III. Prepare reconciliation statement for Year 1 and Year 2.
Transcribed Image Text:3. Hi-Tech manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable Manufacturing Overhead Variable Selling and Administrative expense Fixed Cost Per Year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $15 $5 $5 $250,000 $80,000 During its first year of operations, Hi-Tech produced 50,000 units and sold 35,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is Tk.80 per unit. Required: I. Assume the company uses variable costing: Prepare the appropriate income statement for Year 1 and Year 2.0 II. Assume the company uses absorption costing: Prepare the appropriate income statement for Year 1 and Year 2. III. Prepare reconciliation statement for Year 1 and Year 2.
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