Answered step by step
Verified Expert Solution
Question
1 Approved Answer
question 4 part 1 part 2 part 3 7. During Heaton Company's first two years of operations, it reported absorption costing net operating income as
question 4 part 1 part 2 part 3 7. During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows 01:28:07 Year 2 $ 1,764,000 1,232.800 532,000 336,000 $ 196,000 Book Year 1 Sales @ $63 per unit) $ 1,134, Dee Cost of goods sold ( 544 per unit) 792,000 Gross margin 342,000 Selling and administrative expenses 306,000 Net operating income $36,000 *$3 per unit variable: $252,000 fixed each year, The company's $44 unit product cost is computed as follows. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5437,000 23,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: 3 19 $44 Units produced Units told Year 1 23,000 18,000 Year 2 23.000 28.000 Required: 1. Using variable costing, what is the unit product cost for both years? MC 1 Sales (@ $63 per unit) Cost of goods sold (@ $44 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,134,000 792,000 342,000 306,000 $ 35,000 Year 2 $ 1,764,000 1,232,000 532,000 336 , $ 196,000 *$3 per unit variable: $252,000 fixed each year The company's $44 unit product cost is computed as follows: $9 13 Direct materials Direct labor Varlable manufacturing overhead Fixed manufacturing overhead (5497,000 + 23,600 units) Absorption costing unit product cost Production and cost data for the first two years of operations are 19 $.44 N Year 1 Year 2 Units produced 23,000 23,000 Units sold 18,000 28,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost Required 2 > Production and cost data for the first two years of operations are Units produced Units sold Year 1 23,000 18,000 Year 2 23,000 28,000 29 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sion) Year 1 Year 2 Net operating income (los)
part 1
part 2
part 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started