Please can someone assist? Problem 1
Problem 2- I do not know how to get cost of goods sold Year 3
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University, Tani Creations, the Income Statement For the Quarter Ended March 31 Bales (26,050 units) $1,122,000 Variable expenses Variable cost of goods sold $ 479,655 Variable selling and administrative 193.545 673,200 Contribution margis 448,800 Fixed expenses Fixed manufacturing overhead 297.450 Fixed selling and administrative 172,850 471,200 Het operating lona $ 22,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing ratter than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow: 33,050 28.050 Units produced Units sold variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.50 $ 0.00 $ 1.60 6.90 Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 33,050 units but sold 38,050 units. (Assume no change in total fixed costs) a. What is the company's variable costing net operating income foss) for the second quarter? b. What is the company's absorption costing net operating income foss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable couts per unit Manufacturing Direet materials Direct labor Variable manufacturing overhead Variable selling and administrative Tixed cost per year Fixed manufacturing overhead Fixed selling and administrative expenses $ 600.000 $ 240,000 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 Heas produced 40.000 units and sold 65.000 units. The selling price of the company's product is $57 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 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 20 Reg Reg30 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costino (Round your Intermediate calculations to 2 decimal places.) Haas Company Absorption Costing Income Statement Yeart Year 2 Year Sales 5 3.420,000 $ 2,850,000 $ 3.705.000 Cost of goods sold 3.120,000 2.500,000 Gross margin 300.000 350,000 3,705,000 Selling and administrative expenses 300.000 200,000 305,000
