Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: During its first year

image text in transcribed
image text in transcribed
image text in transcribed
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $58 per unit. Required: 2. Assume the company uses variable costing: 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. 3. Assume the company uses absorption costing: 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. Data Selling price per unit $58 Variable Costs per Unit: Manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed Costs per Year: Fixed manufacturing overhead per year $960,000 Fixed selling and administrative expenses $240,000 Units produced during the year Units sold during the year \begin{tabular}{ccr} Year 1 & Year 2 & Year 3 \\ \hline 60,000 & 75,000 & 40,000 \\ 60,000 & 50,000 & 65,000 \end{tabular} Compute the Ending Inventory Units in beginning inventory \begin{tabular}{lll} Year 1 & Year 2 & Year 3 \\ \hline \end{tabular} Units produced during the year Units sold during the year Units in ending inventory Compute the Variable Costing Unit Product Cost Direct materials \begin{tabular}{lll} Year 1 & Year 2 & Year 3 \\ \hline \end{tabular} Direct labor Variable manufacturing overhead Variable costing unit product cost Construct the Variable Costing Income Statement Van. Compute the Absorption Costing Unit Product Cost Construct the Absorption Costing Income Statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Principles And Applications

Authors: Horace R. Brock, Linda Herrington

6th Edition

0028034287, 978-0028034287

More Books

Students also viewed these Accounting questions