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Case $6-29($Algo$)$ Varlable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1.$

LO$6-2]$

$[$The following informotion opplies to the questions disployed below.$]$

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

three years of operations:Manufacturing: Direct labor $ $18$Variable selling and administrative $ $4$

Fixed costs per year:Fixed selling and adninistrative expenses $ $180,0$e$$During its first year of operations, O'Brien produced $95,000$ units and sold $72,000$ units. During its second year of

operations, it produced $76,000$ units and sold $94,000$ units. In its third yesr, O'Brien produced $88,000$ units and sold

$83,000$ units. The selling price of the company's product is $$77$ per unit.

Case $6-29$ Part$-3($Algo$)$

Assume the company uses absorption costing and a F$|$FO inventory flow assumption $($F$|$FO means first$-$in first$-$out; in other words, it

assumes 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 $3.$

Complete this question by entering your answers in the tabs below.

Required $3$B

Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$

Note: Round your intermediate calculations to $2$ decimal places. Required Information

Case $6-29($Algo$)$ Varlable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1.$

LO$6-2]$

$[$The following informotion opplies to the questions clisployed below.$]$

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

three years of operations:Manufacturing: Direct labor $ $18$Variable selling and administrative $ $4$

Fixed costs per year:Fixed selling and adninistrative expenses $ $180,$aeaDuring its first yesr of operations, O'Brien produced $95,000$ units and sold $72,000$ units. During its second year of

operations, it produced $76,000$ units and sold $94,000$ units. In its third year, O'Brien produced $88,000$ units and sold

$83,000$ units. The selling price of the company's product is $$77$ per unit.

Case $6\mathrm{.}29$ Part$-4($Algo$)$

Assume the company uses absorption costing and a LIFO inventory flow assumption $($LIFO means last$-$in first$-$out; in other words, it

assumes 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.

Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

Note: Round your intermediate calculations and final answers to $2$ decimal places. Required information

Case $6-29($Algo$)$ Varlable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1.$

three years of operations:Manufacturing: Direct labor $ $18$Variable selling and administrative $$4$

Fixed costs per year:Fixed selling and adninistrative expenses $ $180,$eeaDuring its first yesr of operations, O'Brien produced $95,000$ units and sold $72,000$ units. During its second year of

operations, it produced $76,000$ units and sold $94,000$ units. In its third yesr, O'Brien produced $88,000$ units and sold

$83,000$ units. The selling price of the company's product is $$77$ per unit.

Case $6-29$ Part$\mathrm{.}3($Algo$)$

Assume the company uses absorption costing and a FIFO inventory flow assumption $($F$|$FO means first$-$in first$-$out; in other words, it

assumes 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 $3.$

Complete this question by entering your answers in the tabs below.

Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

Note: Round your intermediate calculations and final answers to $2$ decimal places.

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