Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 34 Variable cost per

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 34 Variable cost per unit: Direct materials Fixed costs per year: Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $2,106,000 $ 840,000 $ 314,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations. Ogilvy produced 78,000 units and sold 78,000 units. During its second year of operations, it produced 78,000 units and sold 72.600 units. In its third year, Ogilvy produced 78,000 units and sold 83,400 units. The selling price of the company's product is $76 per unit. Required: 1. Assume the company uses super-variable costing: 2. 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. 2. Assume the company uses a variable costing system that assigns $27 of direct labor cost to each unit produced: 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. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1. 2. and 3. Complete this question by entering your answers in the tabs below. ine company does not incur any variapie manufacturing overnead costs or variable selling ana aaministrative expenses. During its tirst year of operations, Ogilvy produced 78,000 units and sold 78,000 units. During its second year of operations, it produced 78,000 units and sold 72,600 units. In its third year, Ogilvy produced 78,000 units and sold 83,400 units. The selling price of the company's product is $76 per unit. Required: 1. Assume the company uses super-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. 2. Assume the company uses a variable costing system that assigns $27 of direct labor cost to each unit produced: 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. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. Complete this question by entering your answers in the tabs below. Reo 1A Reg 1B Reg 2A Reg 2B Reg 3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing. Unit Product Cost Year 1 Year 2 Year 3 RATE Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Req 2B Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses su Ogilvy Company Super-Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses: Total fixed expenses Net operating income(loss) Reg 1A Req 2A > Req 1A Req 1B Req 2A Req 2B Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $27 of direct labor cost to each unit produced. Ogilvy Company Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses Total fized expenses Net operating income doss) Prepare an income statement for Year 1 Year 2, and Year 3. Reconcile the difference between the super-variable costing and variable costing net operating inc Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Reg 3 Reconcile the difference between the super-variable costing and variable costing net operating incomes in Year 1 Year 2 Year 3 Super-variable costing net operating income (loss) Variable costing net operating income (loss) Req 1A Req 1B Req 2A Req 2B Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $27 of direct labor cost to each unit produced. Ogilvy Company Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses Total fized expenses Net operating income doss) Prepare an income statement for Year 1 Year 2, and Year 3. Reconcile the difference between the super-variable costing and variable costing net operating inc Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Reg 3 Reconcile the difference between the super-variable costing and variable costing net operating incomes in Year 1 Year 2 Year 3 Super-variable costing net operating income (loss) Variable costing net operating income (loss)

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_2

Step: 3

blur-text-image_3

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

Payroll Accounting 2020

Authors: Jeanette Landin

6th Edition

1260247961, 9781260247961

More Books

Students also viewed these Accounting questions