Required information

$[$The following information applies to the questions displayed below.$]$

O'Brien 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 $$26$

Direct labor $ $$17$

Variable manufacturing overhead $$4$

Variable selling and administrative

Fixed costs per year:

Fixed manufacturing overhead $$520,000$

Fixed selling and administrative expenses $,$$$100,000$

During its first year of operations, O'Brien produced $97,000$ units and sold $80,000$ units. During its second year of

operations, it produced $81,000$ units and sold $93,000$ units. In its third year, O'Brien produced $83,000$ units and sold

$78,000$ units. The selling price of the company's product is $$75$ per unit.

Assume the company uses absorption costing and a FIFO inventory flow assumption $($FIFO means first$-$in first$-$out. In other words, it

assumes that the oldest units in inventory are sold first$)$:

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 $3.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Req $3A$: Note the Unit product cost for Year $1$ is $$52\mathrm{.}36,$ Year $2$ is $$53\mathrm{.}42$ and Year $3$ $$53\mathrm{.}27.$

Req $38$

Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$

Note: Round your intermediate calculations to $2$ decimal places.