During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: d Sales (@ $63 per unit) Cost of goods sold (e $37 per unit) Gross margin Selling and administrative expenses. Net operating income Year 1 Year 2 $ 1,071,000 $1,701,000 629.000 999,000 442,000 702,000 297,000 327,000 $ 145,000 $ 375,000 $3 per unit variable: $246,000 fixed each year. The company's $37 unit product cost is computed as follows: $6 12 5 . Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead (5308,000 + 22,000 units) Absorption costing unit product cost $ 37 Production and cost data for the first two years of operations are: Year 22,000 17.000 Year 2 Unsto produced 22,000 Units sold 27,000 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 . $3 per unit variable: $246,000 fixed each year, The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($308,000 + 22,000 units) Absorption conting unit product cont $ 6 12 5 14 $ 32 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 22,000 17,000 Year 2 22,000 27,000 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 Using variable costing, what is the unit product cost for both years? Unit product com Required 2 > He company p/ un proUULI LUSL IS compueu as IUIUW. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($308,000 + 22,000 units) Absorption costing unit product cost $ 6 12 5 14 $ 37 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 22,000 17,000 Year 2 22,000 27,000 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 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (oss) mului HIVUULEPULUH. $ 6 12 UN Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($308,000 + 22,000 units) Absorption costing unit product cont 14 $ 37 Production and cost data for the first two years of operations are: Unito produced Units sold Year 1 22,000 17,000 Year 2 22,000 27,000 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 Year 2 Variable conting net operating income (los) Add (deduct) foxed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income
