50.1K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below.) 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 Pixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 28 18 4 4 s $ $570,000 $170,000 During its first year of operations, O'Brien produced 93,000 units and sold 75,000 units. During its second year of operations, it produced 76,000 units and sold 89,000 units. In its third year, O'Brien produced 83,000 units and sold 78,000 units. The selling price of the company's product is $74 per unit. 2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest 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. Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B Prey 2 1 Next > of 4 !!! UJUNG UND LIPU Ventory flow assumption (LIFO means last-in first-o assumes that the newest 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. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Compute the unit product cost for Year 1, Year 2, and Year 3. Unit Product Cost Year 1 Year 2 Year 3 Red 2A Reg 28 2 Prev Next > of 4 Req 2A Req 2B Prepare an income statement for Year 1, Year 2, and Year 3. O'Brien Company Variable Costing Income Statement Year 1 Year 2 Year 3 Variable expenses at Total variable expenses Fixed expenses Total fixed expenses Reg 2A 1 Prev 2. Next >

Answer & Explanation Solved by verified expert

See Answer