Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1 LO6-2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 29 S 21 $ 5 $1 $ 330,000 $ 150,000 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, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $64 per unit Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $ 390,000 $ 150,000 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, Haas produced 40,000 units and sold 65.000 units. The selling price of the company's product is $64 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 2A Reg 20 Reg 3 Reg 30 Compute the company's break even point in unit sales units Reg 2 > Reg 1 spoed Red 2A Reg 28 Reg 3A Reg 30 Prepare an income statement for Year 1. Year 2, and Year 3. Assume the company uses variable costing Bloce Hoas Company Variable Costing Income Statement Year 1 Year 2 Year Hir Beerences Net operating income foss) Req2A Req3A > PULCC U pruuuct CUSTTUI Tea To Z, dr Team . 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 2A Req 2B Req Reg 3B Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost ompute the unit product cost for Year 1. Year 2, and Year 3 repare an Income statement for Year 1, Year 2 and Year 3 Complete this question by entering your answers in the tabs below. D Reg 1 Reg 2A Reg 28 Reg 3A Reg 38 repare an income statement for Year 1 Year 2, and Year 3. Assume the company uses absorption costing. (Round your intermediate calculations to 2 decimal placen.) Haas Company Absorption Costing Income Statement Year 1 Year 2 Year 3 Net operating income (loss)
