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I do not believe I filled this out correctly. Please assist with how to fill this Variable Costing Income Statement out correctly per the question
I do not believe I filled this out correctly. Please assist with how to fill this Variable Costing Income Statement out correctly per the question and provided table. Thank you!
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 28 20 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 4 3 $ 210,000 $ 150,000 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 $61 per unit Required: 1. Compute the company's break-even point in unit sales. 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. Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Haas Company Variable Costing Income Statement Year 1 Year 2 $ 3,660,000 $ 3,050,000 Year 3 Sales $ 3,965,000 Variable expenses: Indirect materials Indirect labor Fixed manufacturing overhead Variable selling and administrative Total variable expenses Contribution margin Fixed expenses. Fixed manufacturing overhead Fixed selling and administrative 3,300,000 3,300,000 360,000 2,750,000 2,750,000 300.000 3,575,000 3,575,000 390,000 360,000 360,000 360,000 Total fixed expenses 360.000 360.000 360,000 Net operating income (loss) $ 0 $ (60,000) $ 30,000Step by Step Solution
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