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Please help answer the missing boxes as apart of this managerial accounting problem! Note that the numbers that are already filled in are correct and
Please help answer the missing boxes as apart of this managerial accounting problem! Note that the numbers that are already filled in are correct and should aid with solving the rest that I need help with.
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and alministrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 26 $16. $2 $1 Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. $ 240,000 $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Req 1A Req 1B Unit product cost $ Assume the company uses variable costing. Compute the unit product cost for year 1 and yea Year 1 Req 2A 44 $ Year 2 Req 2B. 44 Req 3 Reg 1A Req 1B > Sales Variable expenses: Walsh Company Income Statement Variable cost of goods sold Variable selling and administrative Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense Total fixed expenses Net operating income (loss) $ Year 1 Req 1A Req 1B Unit product cost Req 2A Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2 decimal places.) Year 1 $ 48.80 $ Req 2B Year 2 50.00 Req 3 Walsh Company Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Year 1 $ 2,040,000 1,952,000 88,000 130,000 $ (42,000) a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses of deductions as a negative value.) Req 18 Req 2A Req 2B Req 3 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) Step by Step Solution
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