Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plants operation. Beginning inventory 0 Units produced 45,000 Units sold 40,000 Selling price per unit $79 Selling and administrative expenses: Variable per unit $3 Fixed (total) $ 449,000 Manufacturing costs Direct materials cost per unit $15 Direct labor cost per unit $8 Variable manufacturing overhead cost per unit $3 Fixed manufacturing overhead cost (total) $ 765,000 Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. (Omit the "$" sign in your response.) Unit product cost $ b. Prepare an income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Absorption Costing Income Statement Sales $ ? Cost of goods sold $ ? Gross margin $ ? Selling and administrative expenses $ ? Net operating income (loss) $ ? 2. Assume that the company uses variable costing. a. Determine the unit product cost. (Omit the "$" sign in your response.) Unit product cost $ ? b. Prepare a contribution format income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Variable Costing Income Statement Sales $ ? Variable expenses: Variable selling and administrative expenses $ ? Variable cost of goods sold $ ? $ ? Contribution margin $ ? Fixed expenses: $ ? Fixed manufacturing overhead Fixed selling and administrative expensese $ ? $ ? Net operating income (loss) $ ? Question set 2 Nickelson Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations: Variable costs per unit: Manufacturing: Direct materials $25 Direct labor $17 Variable manufacturing overhead $8 Variable selling and administrative $3 Fixed costs per year: Fixed manufacturing overhead $ 150,000 Fixed selling and administrative expenses $ 90,000 During its first year of operations Nickelson produced 60,000 units and sold 60,000 units. During its second year of operations it produced 75,000 units and sold 50,000 units. In its third year, Nickelson produced 40,000 units and sold 65,000 units. The selling price of the companys product is $57 per unit. 1. Compute the companys break-even point in units sold. Break-even unit sales units 2. Assume the company uses variable costing: a. Compute the unit product cost for year 1, year 2, and year 3. (Omit the "$" sign in your response.) Year 1 Year 2 Year 3 Unit product cost $ $ $ b. Prepare an income statement for year 1, year 2, and year 3. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Variable Costing Income Statement Year 1 Year 2 Year 3 Sales $ ? $ ? $ ? Variable expenses: Variable cost of goods sold $ ? $ ? $ ? Variable selling and administrative expenses $ ? $ ? $ ? Total variable expenses Contribution margin $ ? $ ? $ ? Fixed expenses: Fixed manufacturing overhead $ ? $ ? $ ? Fixed selling and administrative expenses $ ? $ ? $ ? Total fixed expenses Net operating income (loss) $ ? $ ? $ ? 3. Assume the company uses absorption costing: a. Compute the unit product cost for year 1, year 2, and year 3. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.) Year 1 Year 2 Year 3 Unit product cost $ ? $ ? $ ? b. Prepare an income statement for year 1, year 2, and year 3. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) Absorption Costing Income Statement Year 1 Year 2 Year 3 Sales $ ? $ ? $ ? Cost of goods sold $ ? $ ? $ ? Gross margin $ ? $ ? $ ? Selling and administrative expenses $ ? $ ? $ ? Net operating income (loss) $ ? $ ? $ ?