1. Compute the unit product cost in each year under variable costing.2. Compute for the net operating income under variable costing for year 13. Compute for the net operating income under variable costing for year 2 Duif Company's absorption costing income statements for the last two years are presentedbelow:Year 1Year 2Sales$70,000$90,000Less cost of goods sold:Beginning inventory6,000Add cost of goods manufactured48,00048,00054,000Goods available for sale48,000Less ending inventoryCost of goods sold6,00042,00054,00028,000Gross marginLess selling & admin. expenses36,00025,00031,000Net operating income$ 3,000$ 5,000Data on units produced and sold in each of these years are given below:Year 1Year 2Units in beginning inventoryUnits produced1,0008,0008,000Units sold7,0009,000Fixed factory overhead totaled $16,000 in each year. This overhead was applied toproducts at a rate of $2 per unit. Variable selling and administrative expenses were $3per unit sold.

The income statement is an important financial statement of the business and it is prepared to find…

Duif Company's absorption costing income statements for the last two years are presente= below: Year 1 Year 2 Sales $70,000 $90,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured 6,000 48,000 48,000 Goods available for sale 48,000 54,000 Less ending inventory Cost of goods sold Gross margin Less selling & admin. expenses Net operating income 6,000 42,000 54,000 36,000 31,000 $ 5,000 28,000 25,000 $ 3,000 Data on units produced and sold in each of these years are given below: Year 1 Year 2 Units in beginning inventory Units produced 1,000 8,000 8,000 9,000 Units sold 7,000

Duif Company's absorption costing income statements for the last two years are presente= below: Year 1 Year 2 Sales $70,000 $90,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured 6,000 48,000 48,000 Goods available for sale 48,000 54,000 Less ending inventory Cost of goods sold Gross margin Less selling & admin. expenses Net operating income 6,000 42,000 54,000 36,000 31,000 $ 5,000 28,000 25,000 $ 3,000 Data on units produced and sold in each of these years are given below: Year 1 Year 2 Units in beginning inventory Units produced 1,000 8,000 8,000 9,000 Units sold 7,000

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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