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Variable costs per unit: Manufacturing: Direct materials Direct labor $ 29 $ 21 Variable manufacturing overhead Variable selling and administrative $5 $1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 $ 150,000 Fixed selling and administrative expenses 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 $64 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.

Variable costs per unit: Manufacturing: Direct materials Direct labor $ 29 $ 21 Variable manufacturing overhead Variable selling and administrative $5 $1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 $ 150,000 Fixed selling and administrative expenses 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 $64 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.

FINANCIAL ACCOUNTING
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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Variable costs per unit: Manufacturing: Direct materials Direct labor $ 29 $ 21 $5 Variable manufacturing overhead Variable selling and administrative $1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative expenses $ 150,000 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 $64 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.
Transcribed Image Text:Variable costs per unit: Manufacturing: Direct materials Direct labor $ 29 $ 21 $5 Variable manufacturing overhead Variable selling and administrative $1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative expenses $ 150,000 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 $64 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.
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B 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 $4,160,000 Sales $ 3,840,000 $3,200,000 Variable expenses: Variable cost of goods sold 3,300,000 2,750,000 3,575,000 Variable selling and administrative 60,000 50,000 65,000 Total variable expenses 3,360,000 2,800,000 3,640,000 Contribution margin 480,000 400,000 520,000 Fixed expenses: Fixed manufacturing overhead 330,000 330,000 330,000 Fixed selling and administrative 150,000 150,000 150,000 480,000 480,000 480,000 Net operating income (loss) 0 $ (80,000) $ 40,000 Req 3A > $ < Req 2A
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B 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 $4,160,000 Sales $ 3,840,000 $3,200,000 Variable expenses: Variable cost of goods sold 3,300,000 2,750,000 3,575,000 Variable selling and administrative 60,000 50,000 65,000 Total variable expenses 3,360,000 2,800,000 3,640,000 Contribution margin 480,000 400,000 520,000 Fixed expenses: Fixed manufacturing overhead 330,000 330,000 330,000 Fixed selling and administrative 150,000 150,000 150,000 480,000 480,000 480,000 Net operating income (loss) 0 $ (80,000) $ 40,000 Req 3A > $ < Req 2A
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