Saved Duning neaton Company's St (wo years or operators, it reported dusurper cosung net operaung income as follows. Sales ($61 per unit) Year 1 $ 976,000 624,000 Year 2 $ 1,586,000 1,014,000 Cost of goods sold (@ $39 per unit) Gross margin Selling and administrative expenses Net operating income *$3 per unit variable: $248,000 fixed each year. The company's $39 unit product cost is computed as follows Direct materials: $ 9 Direct labor 9 Variable manufacturing overhead Fixed manufacturing overhead ($357,000 21,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: 4 17 $ 39 Units produced Units sold Required: Year 11 Year 2 21,000 21,000 16,000 26,000 352,000 296,000 $ 56,000 572,000 326,000 $ 246,000 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Absorption costing unit product Production and cost data for the first two years of operations are 130 Units produced Units sold Required: Year 1 Year 2 21,000 21,000 16,000 26,000 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Net operating income (loss) Year 1 Year 2 Absorption costing unit product cost Production and cost data for the first two years of operations are 43 Units produced Units sold Required: Year 1 21,000 Year 2 21,000 16,000 26,000 $ 39 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory Absorption costing net operating income Prev 1 of 1 Next