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need help in all. please add work/steps. thank you. During Heaton Company's first two years of operations, it reported absorption costing net operating income as
need help in all. please add work/steps. thank you.
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: - Sales (e $62 per unit) Cost of goods sold ( 541 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,178,888 279,000 399,000 309, eee $ 90,880 Year 2 $ 1,798,000 1,189,000 609,800 339,000 5 270,000 * $3 per unit variable: $252,000 fixed each year. The company's $41 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5456,000 + 24,000 units) Absorption costing unit product cost S6 12 4 19 5.41 Forty percent of fixed manufacturing overhead consists of wages and salaries, the remainder consists of depreciation pharges on production equipment and buildings. Production and cost data for the first two years of operations are Units produced Units sold Year 1 24,000 19,000 Year 2 24,000 29,000 D 5 11 Next Units produced Units sold 24,099 19,800 Ter 24,000 29,000 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. % Answer is not complete. 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 cost s 22 aquino Required 2 > X Answer is not complete. 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 minu sign.) Year 1 Net operating income (loss) Year 2 S291,000 $ (64,000) Answer is not complete. 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. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating Income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Less: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income Step by Step Solution
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