Homework Assignment $($i$)$

Help

Save & Exit

Submit

Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations:

Variable costs per unit:

Manufacturing:

Direct materials

Direct labor $$21$

Variable manufacturing overhead $$12$

Variable selling and administrative $,$$$2$

Fixed costs per year:

Fixed manufacturing overhead

Fixed selling and administrative expenses $$320,000$

$$50,000$

During its first year of operations, Walsh produced $50,000$ units and sold $40,000$ units. During its second year of operations, it produced $40,000$ units and sold $50,000$ units. The selling price of the company's product is $$56$ per unit.

Required:

Assume the company uses variable costing:

a$.$ Compute the unit product cost for Year $1$ and Year $2.$

b$.$ Prepare an income statement for Year $1$ and Year $2.$

Assume the company uses absorption costing:

a$.$ Compute the unit product cost for Year $1$ and Year $2.$

b$.$ Prepare an income statement for Year $1$ and Year $2.$

Reconcile the difference between variable costing and absorption costing net operating income in Year $1.$

Complete this question by entering your answers in the tabs below.

Req $1A$

Req $1B$

Req $2A$

Req $2$B

Assume the company uses variable costing. Compute the unit product cost for year $1$ and year $2.$

$\backslash$table$[[,$Year $1,$Year $2],[$Unit product cost,,$]]$

Prevy

$4$ of $8$

Next