During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Year 1Sales (862 per unit)Year 2$930,000 $1,550,000495,000Cost of goods sold t# $33 per unit)Gross margin625,000435,000725,000Selling and adninistrative expenses292.000322,000Set operating income$ 143,000$ 403,000*$3 per unit variable: $247,000 fixed each year.The company's $33 unit product cost is computed as follows:Dirpet materialsDiret laborVariable manufacturing overhead313Fixed manufacturing overhead (5260,000 20,000 unita)Absorption costing unit product costProduction and cost data for the first two years of operations areYear 1Year 2Units produced20,00020,000thits sold15,00025,000Required: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 273. Reconcile the absorption costing and the variable costing net operating income figures for each year5:33

Under variable costing only variable production cost is consider for ending inventory and total…

During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (862 per unit) Cost of goods sold t# $33 per unit) Gross margin $930,000 $1,550,000 495,000 625,000 435,000 725,000 Selling and administrative expenses 292,000 322,000 Set operating income $ 143,000 $403,000 $3 per unit variable: $247,000 fixed each year. The company's $33 unit product cost is computed as follows: Birpet materials Diret labor 10 Variable manufacturing overhead 13 Fised manufacturing overhead (5260,000 20,000 unita) Absorption costing unit product cost 5:33 Production and cost data for the first two years of operations are Year 1 Year 2 Units produced 20,000 20,000 thits sold 15,000 25,000 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 27 3. Reconcile the absorption costing and the variable costing net operating income figures for each year

During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (862 per unit) Cost of goods sold t# $33 per unit) Gross margin $930,000 $1,550,000 495,000 625,000 435,000 725,000 Selling and administrative expenses 292,000 322,000 Set operating income $ 143,000 $403,000 $3 per unit variable: $247,000 fixed each year. The company's $33 unit product cost is computed as follows: Birpet materials Diret labor 10 Variable manufacturing overhead 13 Fised manufacturing overhead (5260,000 20,000 unita) Absorption costing unit product cost 5:33 Production and cost data for the first two years of operations are Year 1 Year 2 Units produced 20,000 20,000 thits sold 15,000 25,000 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 27 3. Reconcile the absorption costing and the variable costing net operating income figures for each year

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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