50.1K

Verified Solution

Link Copied!

Please help to solve this question (#4, Ch. 4). Thank you.

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 Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses 26 17 4 3 $ 5570,000 $140,000 During its first year of operations, O'Brien produced 92,000 units and sold 74,000 units. During its second year of operations, it produced 77,000 units and sold 90,000 units. In its third year, O'Brien produced 82,000 units and sold 77,000 units. The selling price of the company's product is $72 per unit 4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-n first-out. In other words. It assumes that the newest units in Inventory are sold firsty 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 4 Req 40 Compute the unit product cost for Year 1, Year 2. and Year 3. (Round your intermediate calculations and final answers to 2 decimal places) Unit Product Com Year 1 Year 2 Yem 3 Reg 405 Required Information The following formation 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 Fixed costs per yeart Fixed manufacturing overhead Fixed selling and administrative expenses $ 5 $ $ 26 17 4 3 $570,000 $140,000 During its first year of operations. O'Brien produced 92,000 units and sold 74,000 units. During its second year of operations. It produced 77,000 units and sold 90,000 units. In its third year, O'Brien produced 82,000 units and sold 77,000 units. The selling price of the company's product is $72 per unit. 4 Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means tast-n 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. Req 4A Reg 48 Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.) O'Brien Company Absorption Costing Income Statoment Year 1 Year 2 Year 3 Cost of goods sold Depreciation ross margin D 0 $ os

Answer & Explanation Solved by verified expert

See Answer