Required information [The following information applies to the questions displayed below.] O'Brien Company manufactures and sells...

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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 $ 25 $ 14 $ 6 $ 3 $ 530,000 Fixed selling and administrative expenses $ 190,000 During its first year of operations, O'Brien produced 91,000 units and sold 77,000 units. During its second year of operations, it produced 77,000 units and sold 86,000 units. In its third year, O'Brien produced 81,000 units and sold 76,000 units. The selling price of the company's product is $79 per unit. 4. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. O'Brien Company Absorption Costing Income Statement Sales Year 1 Year 2 Year 3 $ $ $ 6,083,000 6,794,000 6,004,000 Cost of goods sold Gross margin 3,913,140 2,169,860 4,446,840 3,918,740 2,347,160 2,085,260 Selling and administrative expenses $ 421,000 $ 448,000 $418,000 $ $ $ 1,748,860 1,899,160 1,667,260 Req 4A Req 4B 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 $ 25 $ 14 $ 6 $ 3 $ 530,000 Fixed selling and administrative expenses $ 190,000 During its first year of operations, O'Brien produced 91,000 units and sold 77,000 units. During its second year of operations, it produced 77,000 units and sold 86,000 units. In its third year, O'Brien produced 81,000 units and sold 76,000 units. The selling price of the company's product is $79 per unit. 4. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. O'Brien Company Absorption Costing Income Statement Sales Year 1 Year 2 Year 3 $ $ $ 6,083,000 6,794,000 6,004,000 Cost of goods sold Gross margin 3,913,140 2,169,860 4,446,840 3,918,740 2,347,160 2,085,260 Selling and administrative expenses $ 421,000 $ 448,000 $418,000 $ $ $ 1,748,860 1,899,160 1,667,260 Req 4A Req 4B