chapter 7 question 1
Haas 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: Manufacturint: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 23 15 6 1 $ $ $ 240,000 $ 180,000 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 $52 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. 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. Req 1 Req 2A Req 2B Reg 3A Req 3B Compute the company's break-even point in unit sales. Break-even unit sales 60,000 units Ru Req 2A > 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. Req 1 Rgg 2A Req 2B Req 3A Reg 3B Req 2A Compute the unit prouve oust for Year 1 Year 2, and Year 3. Assume the company uses variab Year 1 Year 2 Year 3 44 $ 44 $ 44 Unit product cost $ LIS Reg 1 Reg 2A Req 2B Reg 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 Sales Variable expenses Variable cost of goods sold Variable selling and administrative Total fixed expenses 0 0 D 0 Fxed manufacturing overhead Fixed selling and administrative Total fixed expenses 0 0 Net operating income (loss) s 0$ S 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Red 3A Reg 3B Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. (Round your Intermediate calculations and Anal answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req 3A Req 3B Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. (Round your intermediate calculations to 2 decimal places.) Haas Company Absorption Costing Income Statement Year 1 Year 2 Year 3 0 0 Net operating income (loss) 0 S 0 $ 0
