Osawa, Inc., planned and actually manufactured 260,000 units of its single product in2017 , its first year of operation. Variable manufacturing cost was $26 per unit produced. Variable operating (nonmanufacturing) cost was $11 per unit sold. Planned and actual fixed manufacturing costs were $ 520,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $ 370000. Osawa sold 180,000 units of product at $ 44 per unit.

Requirement 1. Osawa 's 2017 operating income using absorption costing is (a) $ 530,000 , (b) $ 370,000 , (c) $ 740,000 , (d) $900,000, or (e) none of these. Show supporting calculations.

Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) calculations.

Absorption costing

Revenues

Cost of goods sold

Beginning inventory

Variable manufacturing

Allocated fixed manufacturing

Cost of goods available for sale

Deduct ending inventory

Cost of goods sold

Variable operating

Fixed operating

Operating costs

2.requirement Osawa 's 2017operating income using variable costing is (a) $ 890,000 , (b) $ 530,000 , (c) $ 370,000 , (d) $ 740,000 , or (e) none of these. Show supporting calculations.

variable costing

Revenues

Cost of goods sold

Beginning inventory

Variable manufacturing

Allocated fixed manufacturing

Cost of goods available for sale

Deduct ending inventory

Cost of goods sold

Variable operating

Fixed operating

operating income