O'Brien 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. O'Brien produced 95,000 units and sold 70,000 units. During its second year of operations, it produced 80,000 units and sold 100,000 units. In its third yeat, O'Brien produced 85,000 units and sold 80,000 units. The seliting price of the company's product is $75 per unit. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FFFO means first-in first-out in other words, it assumes that the oldest units in inventory are sold first): 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. Prenare an income statement for Year 1. Year 2, and Year 3. O'Brien Company manufactures and selis one product. The following information pertains to each of the company's first three-years of operations: During its first year of operations. O'Brien produced 95,000 unlts and sold 70,000 units. During its second year of operations, it produced 80,000 units and sold 100,000 units. In its third year, OBrien produced 85,000 units and sold 80,000 units. The selling ptice of the company's product is $75 per unit 2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out in other words. it assumes that the newest units in inventory are sold first): 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 . Required information The following information applies to the questions displayed below) O'Brien 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, O'Brien produced 95,000 units and sold 70.000 units. During its second year of operations, it produced 80,000 units and sold 100,000 units. In its third year, O'Brien produced 85,000 units and sold 80,000 units. The selling price of the company's product is $75 per unit. 3. Assume the company uses absorption costing and a FiFO inventory flow assumpton (FIFO means first-in first-out in other words. It assumes that the oldest units in inventory are sold first): 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 . O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first. three years of operations: During its first yeat of operations, OGrien produced 95,000 units and sold 70,000 units. During its second year of operations, it produced 80,000 units and sold 100,000 units. In its third year, O'Brlen produced 85,000 units and sold 80.000 units. The selling price of the company's product is $75 per unit. 4. Assume the company uses absorption costing and a LiFO inventory flow assumption (LiFO means lastin first-out. In other words, it assumes that the newest units in inventory are sold first): 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
