0 Required information [The following information applies to the questions displayed below) O'Brien 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 $ $ $ $ 25 18 5 1 $530,000 $200,000 During its first year of operations, O'Brien produced 95,000 units and sold 71,000 units. During its second year of operations, it produced 85,000 units and sold 104,000 units. In its third year, O'Brien produced 81,000 units and sold 76,000 units. The selling price of the company's product is $80 per unit Required: 1 Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first in first-out. In other words, it assumes that the oldest units in inventory are sold first) 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. Fequired: Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first in first-out In other words, it assumes that the oldest units in inventory are sold first): e. Compute the unit product cost for Year 1. Year 2 and Year 3. Prepare an income statement for Year 1 Year 2, and Year 3 Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Prepare an income statement for Year 1 Year 2, and Year 3. Year 3 O'Brien Company Variable Costing Income Statement Year 1 Year 2 Sales $ 5,680,000 Variable expenses Variable cost of goods sold 3,408,000 Variable selling and administrative 71,000 0 0 3,479,000 2,201.000 0 0 Total variable expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 530,000 200.000 Total foed expenses Net operating income 0 730,000 $ 1,471,000 $ 0 0 $ 0 2 Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first): 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. Reg 2A Reg 28 Prepare an income statement for Year 1, Year 2, and Year 3. Year 2 O'Brien Company Variable Costing Income Statement Year 1 Sales $ 5,600.000 Variable expenses Variable cost of goods sold 3.408.000 Variable selling and administrative 71000 Year 3 Total variable expenses Contribution margin Fred expenses Fored manufacturing overhead Fixed seling and administrative 3.479.000 2,201 000 0 0 0 530.000 200 000 Totalfixed expenses Net operating income 730.000 5 1471 0005 0 0 0 $ 0 3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first in first-out. In other words, it assumes that the oldest units in inventory are sold first 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. RegJA Run 3 Prepare an income statement for Year 1 Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places) Year O'Brian Company Absorption Costing Income Statement Year 1 Year 2 Sales 55,680,000 Cost of goods sold 3.004.100 Grossman 1,575,820 Selling and administrative expenses 271 000 Not puring income 51.6040205 0 0 OS 0 ( Requ 4 Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first) 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. Reg 4 Req 4B aces Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.) O'Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3 Sales $ 5,680,000 Cost of goods sold 3.804 180 1.875,820 0 Selling and administrative expenses 271.000 Net operating income $ 16048205 OS 0