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Osawa, Inc., planned and actually manufactured 180,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $25 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $360,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $350,000. Osawa sold 110,000 units of product at $44 per unit. Read the requirements Requirement 1. Osawa's 2017 operating income using absorption costing is (a) $530,000, (b) $390,000, (C) $740,000, (d) $880,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Absorption costing Requirements 1. Osawa's 2017 operating income using absorption costing is (a) $530,000, (b) $390,000, (c) $740,000, (d) $880,000, or (e) none of these. Show supporting calculations 2. Osawa's 2017 operating income using variable costing is (a) $750,000, (b) $530,000, (c) $390,000, (d) $740,000, or (e) none of these. Show supporting calculations. Print Done Operating income for Absorption costing Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs $ Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Cost of goods sold Gross margin Fixed operating costs Variable operating costs Operating income Osawa's 2017 operating income using absorption costing is ma Variable Variable costing Revenues Variable cost of goods sold: Beginning inventory $ Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs Operating income

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