Please help me with all answers thanku During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Year 1Year 2Sales (@$62 per unit)Cost of goods sold (@ $42 per unit)Gross marginSelling and administrative expenses*Net operating income*$3 per unit variable; $249,000 fixed each year.The company's $42 unit product cost is computed as follows:Direct materialsDirect laborUnits producedUnits soldVariable manufacturing overheadFixed manufacturing overhead ($475,000 ÷ 25,000 units) 19Absorption costing unit product cost$42Production and cost data for the first two years of operations are:Year 1Year 225,00020,00025,000$ 1030,00094$1,240,000840,000400,000309,000$ 91,000$ 1,860,0001,260,000600,000339,000$ 261,000Required:1. Using variable costing, what is the unit product cost for both years?2. What is the variable costing net operating income in Year 1 and in Year 2?3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

The Variable Costing method is one of the costing methods wherein the fixed manufacturing costs are…

Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Question

Please help me with all answers thanku

During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:
Year 1
Year 2
Sales (@$62 per unit)
Cost of goods sold (@ $42 per unit)
Gross margin
Selling and administrative expenses*
Net operating income
*$3 per unit variable; $249,000 fixed each year.
The company's $42 unit product cost is computed as follows:
Direct materials
Direct labor
Units produced
Units sold
Variable manufacturing overhead
Fixed manufacturing overhead ($475,000 ÷ 25,000 units) 19
Absorption costing unit product cost
$42
Production and cost data for the first two years of operations are:
Year 1
Year 2
25,000
20,000
25,000
$ 10
30,000
9
4
$1,240,000
840,000
400,000
309,000
$ 91,000
$ 1,860,000
1,260,000
600,000
339,000
$ 261,000
Required:
1. Using variable costing, what is the unit product cost for both years?
2. What is the variable costing net operating income in Year 1 and in Year 2?
3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

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