Units produced Units sold Year 1 23,000 18,000 Year 2 23,000 28,000 required: Using variable costing, what is the unit product cost for both years? What is the variable costing net operating income in Year 1 and in Year 2? Reconcile the absorption costing and the variable costing net operating income figures for each year. ariable costing net operating income (loss) Answer is not complete. Complete this question by entering your answers in the tabs below. 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 Year 2
Units produced Units sold Year 1 23,000 18,000 Year 2 23,000 28,000 required: Using variable costing, what is the unit product cost for both years? What is the variable costing net operating income in Year 1 and in Year 2? Reconcile the absorption costing and the variable costing net operating income figures for each year. ariable costing net operating income (loss) Answer is not complete. Complete this question by entering your answers in the tabs below. 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 Year 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Complete this question by entering your answers in the tabs below.
Required 2 Required 3
Net operating income
(loss)
Year 1
23,000.
18,000
Units produced
Units sold
What is the variable costing net operating income in Year 1 and in Year 2?
Note: Loss amounts should be indicated with a minus sign.
Year 2
Year 1
$ (238,000)
Show Transcribed Text
Year 1
23,000
18,000
Year 2
23,000
28,000
Answer is not complete.
Year 21
23,000
28,000
< Required 1
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.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
< Required 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
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 3
Required 3>
Year 1
Year 2
![Problem 4-19 (Algo) Variable Costing Income Statement; Reconciliation [LO,4-1, LO4-2, LO4-3]
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:
Year 2
$1,708,000
1,148,000
Sales (@ $61 per unit)
Cost of goods sold (@ $41 per unit)
Gross margin
Selling and administrative expenses
Net operating income
*$3 per unit variable: $247,000 fixed each year.
The company's $41 unit product cost is computed as follows:
Year 1
$1,098,000
738,000
360,000
301,000
$ 59,000
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead ($345,000 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)
Required:
560,000
331,000
$ 229,000
$9
12
5
15
$41
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Transcribed Image Text:Problem 4-19 (Algo) Variable Costing Income Statement; Reconciliation [LO,4-1, LO4-2, LO4-3]
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:
Year 2
$1,708,000
1,148,000
Sales (@ $61 per unit)
Cost of goods sold (@ $41 per unit)
Gross margin
Selling and administrative expenses
Net operating income
*$3 per unit variable: $247,000 fixed each year.
The company's $41 unit product cost is computed as follows:
Year 1
$1,098,000
738,000
360,000
301,000
$ 59,000
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead ($345,000 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)
Required:
560,000
331,000
$ 229,000
$9
12
5
15
$41
< Prev
6 of 6
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