\fEdit View History Bookmarks Window Help mezto.mheducation.com on 3 - Chapter 06 Pre-Built Problems - Connect G ogilvy company manufactures and sells one product - Google Search 06 Pre-Built Problems i Saved Help During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 1, 071, 000 $ 1, 701, 000 Cost of goods sold (@ $29 per unit) 493 , 000 783 ,000 Gross margin 578, 000 918, 000 Selling and administrative expenses* 305, 000 335 , 000 Net operating income $ 273,000 583, 000 $3 per unit variable; $254,000 fixed each year. The company's $29 unit product cost is computed as follows: Direct materials $ 5 Direct labor 10 Variable manufacturing overhead 2 Fixed manufacturing overhead ($264, 000 + 22,000 units) 12 Absorption costing unit product cost $ 29 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 22, 000 22 , 000 Units sold 17, 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 27 (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) 55,109 7 OCT 4Edit View History Bookmarks Window Help ezto.mheducation.com on 3 - Chapter 06 Pre-Built Problems - Connect G ogilvy company manufactures and sells one product - Google Search Saved Help 06 Pre-Built Problems i During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 1, 071, 000 $ 1, 701, 000 Cost of goods sold (@ $29 per unit) 493, 080 783,000 Gross margin 578, 000 918, 000 Selling and administrative expenses* 305, 000 335 , 000 Net operating income $ 273,000 583, 000 *$3 per unit variable; $254,000 fixed each year. The company's $29 unit product cost is computed as follows: Direct materials Direct labor 10 Variable manufacturing overhead Fixed manufacturing overhead ($264, 000 + 22,000 units) 12 Absorption costing unit product cost $ 29 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 22, 000 22 , 000 Units sold 17, 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 costing net operating income (loss) Absorption costing net operating income 55,109 OCT 4 10 0 9 2