2.

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: $ 25 Variable cost per unit: Direct materials Fixed costs per year: Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $1,242,000 $ 831,000 $ 260,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 69,000 units and sold 69,000 units. During its second year of operations, it produced 69,000 units and sold 65,400 units. In its third year, Ogilvy produced 69,000 units and sold 72,600 units. The selling price of the company's product is $59 per unit. Required: 1. Assume the company uses super-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. 2. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced: 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. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req2A Req 2A Req2B Req3 Req3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing. Unit Product Cost Year 1 Year 2 Year 3 Complete this question by entering your answers in the tabs below. Req 1A Req 1A Reg 1B Reg 18 Req 2A Req ZA Req 28 Req3 Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing. Ogilvy Company Super-Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses: 0 0 Total fixed expenses Net operating income(loss) $ 0 $ 0 $ Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced. Unit Product Cost Year 1 Year 2 Year 3 Req 1A Req 1B Req 2A Req 2B Req3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced. Ogilvy Company Variable Costing Income Statement Year 1 Year 2 Year 3 0 0 0 Fixed expenses: 0 Total fixed expenses Net operating income (loss) 0 0 S Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req3 Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. Year 1 Year 2 Year 3 Super-variable costing net operating income (oss) Variable costing net operating income (loss) Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,124,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,100 units) Variable expenses: Variable cost of goods sold $ 446,790 Variable selling and administrative 188,270 Contribution margin Fixed expenses: Fixed manufacturing overhead 279,900 Fixed selling and administrative 222,540 Net operating loss 635,060 488,940 502,440 13,500) $ Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow: 31,100 28,100 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.10 $ 6.90 $ 1.90 $ 6.70 Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. (Assume no change in total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req Req 3B Req 3C What is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) Req 1A Req 1B Req 1C Req Req 3B Req 3C During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: $ 25 Variable cost per unit: Direct materials Fixed costs per year: Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $1,242,000 $ 831,000 $ 260,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 69,000 units and sold 69,000 units. During its second year of operations, it produced 69,000 units and sold 65,400 units. In its third year, Ogilvy produced 69,000 units and sold 72,600 units. The selling price of the company's product is $59 per unit. Required: 1. Assume the company uses super-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. 2. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced: 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. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req2A Req 2A Req2B Req3 Req3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing. Unit Product Cost Year 1 Year 2 Year 3 Complete this question by entering your answers in the tabs below. Req 1A Req 1A Reg 1B Reg 18 Req 2A Req ZA Req 28 Req3 Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing. Ogilvy Company Super-Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses: 0 0 Total fixed expenses Net operating income(loss) $ 0 $ 0 $ Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced. Unit Product Cost Year 1 Year 2 Year 3 Req 1A Req 1B Req 2A Req 2B Req3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced. Ogilvy Company Variable Costing Income Statement Year 1 Year 2 Year 3 0 0 0 Fixed expenses: 0 Total fixed expenses Net operating income (loss) 0 0 S Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req3 Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. Year 1 Year 2 Year 3 Super-variable costing net operating income (oss) Variable costing net operating income (loss) Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,124,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,100 units) Variable expenses: Variable cost of goods sold $ 446,790 Variable selling and administrative 188,270 Contribution margin Fixed expenses: Fixed manufacturing overhead 279,900 Fixed selling and administrative 222,540 Net operating loss 635,060 488,940 502,440 13,500) $ Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow: 31,100 28,100 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.10 $ 6.90 $ 1.90 $ 6.70 Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. (Assume no change in total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req Req 3B Req 3C What is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) Req 1A Req 1B Req 1C Req Req 3B Req 3C During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss)