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Required information The following information applies to the questions displayed below O Brien Company manufactures and sells one produce the following information pertains to each
Required information The following information applies to the questions displayed below O Brien Company manufactures and sells one produce the following information pertains to each of the company's first three years of operations Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturine overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses 1660,000 $120, 220 During its first year of operations, O Brien produced 100.000 units and sold 80.000 units. During its second year of operations, it produced 75.000 units and sold 90.000 units In its third year. O'Brien produced 80.000 units and sold 75.000 units. The selling price of the company's product is $75 per unit 2. Assume the company uses variable costing and a LIFO invertory flow assumption (UFO means last in first out. In other words, il assumes that the newest units in inventory are sold first a. Compute the unit product cost for Year 1 Year 2 nd Year 3 b. Prepare an income statement for Year 1 Year 2 and Year 3
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