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Complete this question by entering your answers in the tabs below. tequired 1 Required 2 Required 3 econcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 riable costing net operating income (loss) di (deduct) fixed manufacturing overhead deferred in (released from) inventory sorption costing net operating income Year 2

Complete this question by entering your answers in the tabs below. tequired 1 Required 2 Required 3 econcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 riable costing net operating income (loss) di (deduct) fixed manufacturing overhead deferred in (released from) inventory sorption costing net operating income 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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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory Absorption costing net operating income Year 2
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory Absorption costing net operating income Year 2
During Heaton Company's first two years of operations, It reported absorption costing net operating Income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 1,638,000 Cost of goods sold (@$34 per unit) 884,000 $ 1,008,000 544,000 464,000 293,000 Gross margin 754,000 Selling and administrative expenses* 323,000 Net operating income $ 171,000 $ 431,000 *$3 per unit variable: $245,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($252,000+ 21,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 21,000 21,000 Units sold 16,000 26,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating Income In Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating Income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) $9 10 3 12 $34
Transcribed Image Text:During Heaton Company's first two years of operations, It reported absorption costing net operating Income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 1,638,000 Cost of goods sold (@$34 per unit) 884,000 $ 1,008,000 544,000 464,000 293,000 Gross margin 754,000 Selling and administrative expenses* 323,000 Net operating income $ 171,000 $ 431,000 *$3 per unit variable: $245,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($252,000+ 21,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 21,000 21,000 Units sold 16,000 26,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating Income In Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating Income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) $9 10 3 12 $34
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