Problem 7.18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7.1, LO7. 2) Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operatiens Duting its fist 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 yeac, Hass produced 40,000 units and sold 65,000 units. The selling price of the company's product is $65 per unit. Requireet: 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 thie 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. During its first year of operations. Hass 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 companys product is $65 per unit Recuired: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses varable 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 Yeor 1 . Year 2 , and Year.3. b. Prepare an income statement for Year 1, Year 2 ; and Yeur 3. Complete this question by entering your answers in the tabs below, Compute that company's break+even point in unc sales. During its first year of operations, Hans produced 60,000 units and sold 60,000 units. During its second year of operations, it the company's product is $65 per unit. Required: 1. Compute the company's break-even point in unit sales: 2. Assume the company 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, Yest 2 , and Year 3. 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 conting: 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 seling price of the company's product is 565 per unit. Requiredz 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 compary 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. Frepare an incerne statement for Vear 1, Year 2 , and Year 3. Assume the compary uses variable costang. 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 incocne 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. Compute the sift proouct cost for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. (hiound your Compute che ent proovct cov ror lear we is 2 decimal places.? 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. Prepare an income statement for Year 1, Year 2 , and Year 3. Assume the company uses absorpton costing. (Round your intemediate calculations to 2 decimal places.)
