chapter 7 question 11

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 $ $ $ $ 29 15 6 3 $540,000 $160,000 During its first year of operations. O'Brien produced 91,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 86,000 units. In its third year, O'Brien produced 86,000 units and sold 81.000 units. The selling price of the company's product is $76 per unit 2. Assume the company uses variable costing and a LIFO Inventory flow assumption (LIFO means last-in first-out. In other words, 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. Camlet this stinn hrinur answer the best... inn hittir 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 Compute the unit product cost for Year 1, Year 2, and Year 3. Unit Product Cost Year 1 $ 50 Year 2 S 50 Year 3 $ 50 DO Year 3 O'Brien Company Variable Costing Income Statement Year 1 Year 2 Sales Vanable expenses Variable cost of goods sold Variable selling and administrative 0 0 0 0 0 Total variable expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 0 0 0 Total fixed expenses Net operating income $ 0 $ $