Required information

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O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first

three years of operations:

Vartable costs per unit:

Manufacturing:

Direct materials $$27$

Direct labor is $17$

Variable manufacturing overhead is $5$

Voriable selling and administrative $$3$

Fixed costs per year:

Fixed manufacturing overhead $$500,000$

Flxed se$11$ing and adninistrative expenses $ $140,000$

During its first year of operations, O'Brien produced $99\mathrm{.}000$ units and sold $79\mathrm{.}000$ units. During its second year of

operations, it produced $80,000$ units and sold $95,000$ units. In its third year, O'Brien produced $90,000$ units and sold

$85,000$ units. The selling price of the company's product is $$77$ 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 $3.$

$\backslash$times Answer is complete but not entirely correct.

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

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

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