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O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first
three years of operations:
During its first year of operations, O'Brien produced units and sold units. During its second year of
operations, it produced units and sold units. In its third year, O'Brien produced units and sold
units. The selling price of the company's product is $ per unit.
Assume the company uses variable costing and a LIFO inventory flow assumption LIFO means lastin firstout. In other words, it
assumes that the newest units in inventory are sold first:
a Compute the unit product cost for Year Year and Year
b Prepare an income statement for Year Year and Year
