Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6- 1, LO6-2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 26 $ 13 $ 5 $ 3 $ 450,000 $ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $58 per unit. Required: 1. Compute the company's break-even point in unit sales. 2 Assume the company uses variable costing: 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. 3. Assume the company uses absorption costing: 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 38 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Haas Company Variable Costing Income Statement Year 1 Year 2 Year 3 Net operating income (loss)
Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6- 1, LO6-2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 26 $ 13 $ 5 $ 3 $ 450,000 $ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $58 per unit. Required: 1. Compute the company's break-even point in unit sales. 2 Assume the company uses variable costing: 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. 3. Assume the company uses absorption costing: 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 38 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Haas Company Variable Costing Income Statement Year 1 Year 2 Year 3 Net operating income (loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-
1, LO6-2]
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expenses
$ 26
$ 13
$ 5
$ 3
$ 450,000
$ 210,000
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it
produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price
of the company's product is $58 per unit.
Required:
1. Compute the company's break-even point in unit sales.
2 Assume the company uses variable costing:
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.
3. Assume the company uses absorption costing:
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.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 2B
Req 3A
Req 38
Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing.
Haas Company
Variable Costing Income Statement
Year 1
Year 2
Year 3
Net operating income (loss)
<Req 2A
0
0
Req 3A >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf1b9d54-c48c-4e55-a2f2-dd20c4d305b6%2F13a4d954-2efe-457b-bc3e-06e3a6a538b9%2Ff19j19i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-
1, LO6-2]
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expenses
$ 26
$ 13
$ 5
$ 3
$ 450,000
$ 210,000
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it
produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price
of the company's product is $58 per unit.
Required:
1. Compute the company's break-even point in unit sales.
2 Assume the company uses variable costing:
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.
3. Assume the company uses absorption costing:
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.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 2B
Req 3A
Req 38
Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing.
Haas Company
Variable Costing Income Statement
Year 1
Year 2
Year 3
Net operating income (loss)
<Req 2A
0
0
Req 3A >
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