Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 6-19 variable costing income statement; re

Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] During Heaton Company's first two years...

70.2K

Verified Solution

Question

Accounting

image

image

image

image

Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Year 1 Year 2 Sales (e $64 per unit) Cost of goods sold ( $39 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,152,000 1,792,000 702,000 11092000_ 700,000 306,000336,000 1144,0001364,000 450,000 *$3 per unit variable; $252,000 fixed each year The company's $39 unit product cost is computed as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($391,000 23,000 units) Absorption costing unit product cost 10 17 $ 39 Forty percent of fixed manufacturing overhead consists of wages and salaries, the remainder consists of depreciation charges on production equipment and buildings Production and cost data for the first two years of operatons are: Units produced Units sold Year 1 Year 2 23,000 23, 000 18,000 28, 000

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