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Production and cost data for the first two years of operations are: Units produced Units sold Year 1 23,000 18,000 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 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Required 1 Required 2 Year 2 23,000 28,000 Complete this question by entering your answers in the tabs below. Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost

Production and cost data for the first two years of operations are: Units produced Units sold Year 1 23,000 18,000 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 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Required 1 Required 2 Year 2 23,000 28,000 Complete this question by entering your answers in the tabs below. Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Production and cost data for the first two years of operations are: Units produced Units sold 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 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Year 1 23,000 18,000 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost Net operating income (loss) Year 2 23,000 28,000 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with sign.) Year 1 Year 2 Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income < Required 2 Required 3> Year 2 minus
Transcribed Image Text:Production and cost data for the first two years of operations are: Units produced Units sold 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 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Year 1 23,000 18,000 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost Net operating income (loss) Year 2 23,000 28,000 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with sign.) Year 1 Year 2 Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income < Required 2 Required 3> Year 2 minus
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $33 per unit) Gross margin Selling and administrative expenses" Net operating income *$3 per unit variable, $250,000 fixed each year. The company's $33 unit product cost is computed as follows: Direct materials Direct labor Year 1 $ 1,134,000 594,000 540,000 304,000 $ 236,000 Variable manufacturing overhead Fixed manufacturing overhead ($253,000+ 23,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 Year 2 23,000 23,000 18,000 28,000 Units produced Units sold Year 2 $ 1,764,000 924,000 840,000 334,000 $ 506,000 $8 9 5 11 $ 33
Transcribed Image Text:During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $33 per unit) Gross margin Selling and administrative expenses" Net operating income *$3 per unit variable, $250,000 fixed each year. The company's $33 unit product cost is computed as follows: Direct materials Direct labor Year 1 $ 1,134,000 594,000 540,000 304,000 $ 236,000 Variable manufacturing overhead Fixed manufacturing overhead ($253,000+ 23,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 Year 2 23,000 23,000 18,000 28,000 Units produced Units sold Year 2 $ 1,764,000 924,000 840,000 334,000 $ 506,000 $8 9 5 11 $ 33
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