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O'Brien Company manufactures and sells one product. The following information pertains to each of the...

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Accounting

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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 Fixed selling and administrative expenses $ $ $ 28 16 5 $530,000 $200, During its first year of operations. O'Brien produced 99,000 units and sold 75 000 units. During its second year of operations, it produced 77,000 units and sold 96,000 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 $74 per unit. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first in first out. In other words, it assumes that the oldest 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

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