O'Brien Company manufactures and sells one product. The following information pertains to each of the company'sfirst three years of operations:Variable costs per unit:Manufacturing:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeFixed costs per year:Fixed manufacturing overheadFixed selling and administrative expensesCase 6-29 Part-2 (Algo)During its first year of operations, O'Brien produced 97,000 units and sold 73,000 units. During its second year ofoperations, it produced 76,000 units and sold 95,000 units. In its third year, O'Brien produced 88,000 units and sold83,000 units. The selling price of the company's product is $74 per unit.a. Compute the unit product cost for Year 1, Year 2, and Year 3.b. Prepare an income statement for Year 1, Year 2, and Year 3.2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out; in other words, itassumes the newest units in inventory are sold first):Req 2AYear 1Year 2Year 3$ 26$14$6$ 3Complete this question by entering your answers in the tabs below.$ 550,000$ 190,000Req 2BCompute the unit product cost for Year 1, Year 2, and Year 3.Unit ProductCost

Name: O'Brien Company manufactures and sells one product. The following inf
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: O'Brien Company manufactures and sells one product. The following information pertains to each of the company'sfirst three years of operations:Variable costs per unit:Manufacturing:Direct materialsDirect laborVariable manufacturing overheadVariable