1 Saved During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows. Sales (@ $61 per unit) Cost of goods sold (@$37 per unit) Gross margin Selling and administrative expenses Net operating income pped Year 1 $ 1,098,000 666,00 432,000 301.000 $ 131,000 Year 2 $ 1,700,000 1,036,00 672,00 $ 341,600 ook $3 per unit variable: $247.000 fixed each year The company's $37 unit product cost is computed as follows: int Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($276,000 23,000 units) Absorption costing unit product cost $10 12 ences 12 537 Forty percent of fixed manufacturing overhead consists of wages and salaries, the remainder consists of depreciation charges on production equipment and buildings Production and cost data for the first two years of operations are Units produced Units sold Year 1 23,000 18,000 Year 2 23,000 28,000 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 Prex 1 of 4 !!! Next > are Units produced Units sold t Year 1 23,000 18,000 Year 2 23,000 28,000 aces 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) Prey 1 of 4 !!! Next > ,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 yen, es 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, Year 2 Reconciliation of Variable Costing and Absorption Costing Net Operating Income Year 1 Variable costing net operating income foss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Less: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income