During Heaton Company's first two years of operations, It reported absorption costing net operating income as follows: Year 1 5 1,071,000 629,000 442,000 298,800 $ 144,000 Year 2 Sales (e $63 per unit) Cost of goods sold (e $37 per unit) Gross margin Selling and administrative expenses" Net operating income $ 1,701,000 999,000 702,000 328,000 $ 374,000 * $3 per unit variable: $247,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($374,000 + 22,000 units) Absorption costing unit product cost $ 5 10 17 $ 37 Production and cost data for the first two years of operations are: Year 1 22,000 17,000 Year 2 Units produced Units sold 22,000 27,000

During Heaton Company's first two years of operations, It reported absorption costing net operating income as follows: Year 1 5 1,071,000 629,000 442,000 298,800 $ 144,000 Year 2 Sales (e $63 per unit) Cost of goods sold (e $37 per unit) Gross margin Selling and administrative expenses" Net operating income $ 1,701,000 999,000 702,000 328,000 $ 374,000 * $3 per unit variable: $247,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($374,000 + 22,000 units) Absorption costing unit product cost $ 5 10 17 $ 37 Production and cost data for the first two years of operations are: Year 1 22,000 17,000 Year 2 Units produced Units sold 22,000 27,000

Name: During Heaton Company's first two years of operations, It reported ab
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Description: During Heaton Company's first two years of operations, It reported absorption costing net operating income as follows:Sales (e $63 per unit)Cost of goods sold (e $37 per unit)Gross marginSelling and administrative expensesNet operating incomeYear 1$

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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