During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Sales (e $62 per unit) $930,000 Cost of goods sold (e $36 per 540,000 unit) Gross margin 390,000 Selling and administrative 299,000 expenses Net operating income $ 91,000 Year 2 $1,550,000 900,000 650,000 329,000 $ 321,000 $3 per unit variable: $254.000 foved each year. The company's $36 unit product cost is computed as follows: es Direct materials Direct labor Variable manufacturing over head Fixed manufacturing overhead ($320,000 + 20,000 units) Absorption costing unit product cost $ 6 12 2. 16 $36 Forty percent of fored manufacturing overhead consists of wages and salaries, the remainder consists of depreciation charges on production equipment and buildings Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 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. Recyired Required Required 2 3 Using variable costing, what is the unit product cost for both years? Required 2 > During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Sales ( $62 per unit) $930,000 Cost of goods sold (e $36 per 540,000 unit) Gross margin 390,000 Selling and administrative 299,000 expenses Net operating income $ 91,000 Year 2 $1,550,000 900,000 650,000 329,000 $ 321,000 $3 per unit variable; $254,000 fixed each year, The company's $36 unit product cost is computed as follows: es Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($320,000 + 20,000 units) Absorption costing unit product cost $ 6 12 2 16 $36 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income 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. 1 Required Required 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.) Year1 Year 2 Net operating Income (los) During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Sales (e $62 per unit) $930,000 Cost of goods sold (@ $36 per 540,000 unit) Gross margin 390,000 Selling and administrative 299,000 expenses Net operating income $ 91,000 Year 2 $1,550,000 900,000 650,000 329,000 $ 321,000 *$3 per unit variable: $254,000 foed each year. The company's $36 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($320,000 + 20,000 units) Absorption costing unit product cost $ 6 12 2 16 $36 Forty percent of foed manufacturing overhead consists of wages and salaries, the remainder consists of depreciation charges on production equipment and buildings Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 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. Reagired Required Required Regg 1 2 Reconcile the absorption costing and the variable costing net operating income figures for each year Reconcilio of Van Costing and Absorption Costing Net Operating incomes Year 1 Year 2 Varece cont preg income 1038 Absorption con el operang income Required 2
