Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. during heaton company's first two years of operati

During Heaton Company's first two years of operations, it reported absorption costing net operating income...

70.2K

Verified Solution

Question

Accounting

image
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales ($60 per unit) Cost of goods Hold ($38 per unit) Gross margin Selling and administrative expenses Net operating income Yaar 1 Year 2 $ 1,020,000 $1,620,000 646,000 1,026,000 374,000 594,000 298,000 328,000 $ 76,000 $ 266,000 *$3 per unit variable: $247,000 fixed each year, The company's $38 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing over head Fixed manufacturing overhead ($374,000 + 22,000 units) Absorption coating unit product cost $ 7 11 3 17 $ 38 Production and cost data for the first two years of operations are: Units produced Units hold Year 1 22.000 17,000 Year 2 22,000 27,000 Required: 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 27 3. Reconcile the absorption costing and the variable costing net operating income figures for each year

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Use the following choices to answer questions 31 – 35. a.) salivary amylase                                        b.) cholesterol                          c.) pharynx                                                     d.) cephalic                                                     e.) chyme 31.)       Food in the stomach...

Physics
1.2K views

compound microscope has angular magnification equal to 100 If the object subtends an angle of...

Basic Math
1.2K views

For the function f(x) = 6x2 + 2x 4, evaluate and fully simplify each...

Statistics
1.2K views

bsite receives an average of 10 visits every minute The site manager starts to monitor...

Accounting
1.2K views

The following information about the work-in-process inventory pertains to the Remington Plant for the month...

Accounting
1.2K views

8. If you could develop personality traits comprised of four virtues, what virtues would...

Accounting
1.2K views

i am doing receviables and i am working on sage 50 andi want payable amount...

Accounting
1.2K views

(192) (135) 75. - 60 - 65 ...

Accounting
1.2K views

Explain the risk assessment process of a business organization with examples

Accounting
1.2K views

Question 3 Before you can enter a sale on account for a customer you must...

Accounting
1.2K views

The following is a payroll sheet for Blossom Golf Corporation for the first week of...

Accounting
1.2K views

PROBLEM 1 Dobson Construction specializes in the construction of commercial and Industrial buildings. The contractor...