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Problem 6.18 (Algo) Varlable and Absorption Costing Unlt Product Costs and Income Statements [LO6.1, LO6-2] Haas Company manufactures and sells one product. The following Information
Problem 6.18 (Algo) Varlable and Absorption Costing Unlt Product Costs and Income Statements [LO6.1, LO6-2] Haas Company manufactures and sells one product. The following Information pertalns to each of the company's first three years of operations: During its first year of operations, Haas produced 60,000 units and sold 60,000 units. Durling its second year of operatlons, It produced 75,000 units and sold 50,000 unlts. In Its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $61 per unlt. Required: 1. Compute the company's break-even point In unlt sales. 2. Assume the company uses varlable costing: a. Compute the unlt 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 absorptlon costing: a. Compute the unlt 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. Compute the company's break-even point in unit sales. Complete this question by entering your answers in the tabs below. Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Complete this question by entering your answers in the tabs below. Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. Note: Round your intermediate calculations and final answers to 2 decimal places. Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. Note: Round your intermediate calculations to 2 decimal places
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