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

Direct labor

Varect labor $$27$

Varle nanufacturlng overheadnthe

Variable manufacturing overhead $$4$

Variable selling and administrative $$1$

Fixed costs per year:

flxed manufacturing overhead $$520,000$

Fixed selling and administrative expenses $$520,00e$

$,$$$110,0ee$

During its first year of operations, O'Brien produced $93,000$ units and sold $71,000$ units. During its second year of

operations, it produced $77,000$ units and sold $94,000$ units. In its third year, O'Brien produced $86,000$ units and sold

$81,000$ units. The selling price of the company's product is $$80$ per unit.

Required:

Assume the company uses variable 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 $3.$

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

Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

Req $1A$

Req $1$B

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