Required informationComplete this question by entering your answers in the tabs below.Req 1AReq 1BPrepare an income statement for Year 1, Year 2, and Year 3.O'Brien CompanyVariable Costing Income StatementYear 1Year 2Variable expenses:Total variable expensesFixed expenses:Total fixed expensesYear 3 !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 firstthree years of operations:Variable costs per unit:Manufacturing:$30Direct materialsDirect labor$16Variable manufacturing overhead$Variable selling and administrative$Fixed costs per year:Fixed manufacturing overhead$580,000$120,000Fixed selling and administrative expensesDuring its first year of operations, O'Brien produced 94,000 units and sold 78,000 units. During its second year ofoperations, it produced 84,000 units and sold 95,000 units. In its third year, O'Brien produced 85,000 units and sold80,000 units. The selling price of the company's product is $71 per unit.Required:1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, itassumes that 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.

Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

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: $ 30 Direct materials Direct labor $ 16 $ 4 Variable manufacturing overhead Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $580,000 $120,000 Fixed selling and administrative expenses During its first year of operations, O'Brien produced 94,000 units and sold 78,000 units. During its second year of operations, it produced 84,000 units and sold 95,000 units. In its third year, O'Brien produced 85,000 units and sold 80,000 units. The selling price of the company's product is $71 per unit. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that 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. to in to t

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: $ 30 Direct materials Direct labor $ 16 $ 4 Variable manufacturing overhead Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $580,000 $120,000 Fixed selling and administrative expenses During its first year of operations, O'Brien produced 94,000 units and sold 78,000 units. During its second year of operations, it produced 84,000 units and sold 95,000 units. In its third year, O'Brien produced 85,000 units and sold 80,000 units. The selling price of the company's product is $71 per unit. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that 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. to in to t

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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