During Heaton Company's first two years of operations. It reported absorption costing net operating income as follows: Salon ($62 per unit) Cost of goods sold ($34 per unit) Gross margin Selling and administrative expennen Net operating income Year $ 1,116,000 612,000 504,000 300,000 204,000 Year $ 1,736,000 952,000 784,000 330,000 $ 454,000 - $3 per unit variable: $246,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (0299,000 - 23,000 unita) Absorption costing unit product cont 10 4 22 6 34 Production and cost data for the first two years of operations are: Unite produced Unite sold Yake 1 23,000 10,000 Year 2 23,000 20,000 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, 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. Requited 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost $ 21 Required Required 2 > 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) Units sold 18,000 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. 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. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable conting net operating income (10) Add (deduct) fixed manufacturing overhead detarred in (released from) Inventory under aboorption costing Absorption costing net operating income Year 2
