Required information [The following information applies to the questions displayed below.] O'Brien Company manufactures and sells...
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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 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 30 $ 14 $ 5 $ 3 $ 580,000 Fixed selling and administrative expenses $ 200,000 During its first year of operations, O'Brien produced 92,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 87,000 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 $76 per unit. 2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest 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. 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. Req 2A Req 2B Compute the unit product cost for Year 1, Year 2, and Year 3. Unit Product Year 1 Year 2 Year 3 Cost Complete this question by entering your answers in the tabs below. Req 2A Req 2B Prepare an income statement for Year 1, Year 2, and Year 3. Sales O'Brien Company Variable Costing Income Statement Year 1 Year 2 Year 3 $ 6,004,000 $ 6,612,000 $ 6,156,000 Variable expenses: Variable cost of goods sold Variable selling and administrative Total variable expenses 0 0 0 Contribution margin 6,004,000 6,612,000 6,156,000 Fixed expenses: Fixed manufacturing overhead 580,000 580,000 580,000 Fixed selling and administrative 200,000 200,000 200,000 Total fixed expenses 780,000 780,000 780,000 $ 5,224,000 $5,832,000 $ 5,376,000 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 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 30 $ 14 $ 5 $ 3 $ 580,000 Fixed selling and administrative expenses $ 200,000 During its first year of operations, O'Brien produced 92,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 87,000 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 $76 per unit. 4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest 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. Req 4A Req 4B Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Compute the unit product cost for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Product Cost Year 1 Year 2 Year 3 Complete this question by entering your answers in the tabs below. Req 4A Req 4B Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. O'Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3 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 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 30 $ 14 $ 5 $ 3 $ 580,000 Fixed selling and administrative expenses $ 200,000 During its first year of operations, O'Brien produced 92,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 87,000 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 $76 per unit. 2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest 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. 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. Req 2A Req 2B Compute the unit product cost for Year 1, Year 2, and Year 3. Unit Product Year 1 Year 2 Year 3 Cost Complete this question by entering your answers in the tabs below. Req 2A Req 2B Prepare an income statement for Year 1, Year 2, and Year 3. Sales O'Brien Company Variable Costing Income Statement Year 1 Year 2 Year 3 $ 6,004,000 $ 6,612,000 $ 6,156,000 Variable expenses: Variable cost of goods sold Variable selling and administrative Total variable expenses 0 0 0 Contribution margin 6,004,000 6,612,000 6,156,000 Fixed expenses: Fixed manufacturing overhead 580,000 580,000 580,000 Fixed selling and administrative 200,000 200,000 200,000 Total fixed expenses 780,000 780,000 780,000 $ 5,224,000 $5,832,000 $ 5,376,000 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 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 30 $ 14 $ 5 $ 3 $ 580,000 Fixed selling and administrative expenses $ 200,000 During its first year of operations, O'Brien produced 92,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 87,000 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 $76 per unit. 4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest 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. Req 4A Req 4B Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Compute the unit product cost for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Product Cost Year 1 Year 2 Year 3 Complete this question by entering your answers in the tabs below. Req 4A Req 4B Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. O'Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3
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Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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