5 6.66 points Problem 6-19 (Algo) Variable Costing Income Statement: Reconciliation [LO,6-1, LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (561 per unit) Cost of goods sold ( $32 per unit) Selling and administrative expenses Gross margin eBook Net operating Income Print References $3 per unit variable: $246,000 fixed each year. Year 1 $1,098,000 Year 2 $ 1,708,000 576,000 896,000 522,000 812,000 300,000 $222,000 330,000 $ 482,000 The company's $32 unit product cost is computed as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($322,000+23,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are 7 532 Units produced Units sold Required: Year 1 Year 2 23,000 23,000 18,000 28,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost 5 6.66 points eBook Print Sales (@$61 per unit) Cost of goods sold (@ $32 per unit) Gross margin Selling and administrative expenses Net operating Income $3 per unit variable; $246,000 fixed each year. Year 1 $ 1,098,000 576,000 $22,000 300,000 $222,000 The company's $32 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($322,000 23,000 units) Absorption costing unit product cost Year 2 $ 1,708,000 896,000 812,000 330,000 $ 482,000 32 References Production and cost data for the first two years of operations are Year 3 Yeon 2 Units produced 23,000 23,000 10,000 20,000 Saved Units sold 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) 6.66 points eBook Print Sales (@$61 per unit) Cost of goods sold ($32 per unit) Gross margin Selling and administrative expenses Net operating income $3 per unit variable; $246,000 fixed each year. Year 1 $ 1,098,000 576,000 522,000 300,000 $222,000 The company's $32 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($322,000 23,000 units) Absorption costing unit product cost Year 2 $ 1,700,000 896,000 812,000 330,000 $ 482,000 $7 9 2 14 $32 References Production and cost data for the first two years of operations are Year 1 Year 2 Units produced 23,000 Units sold 18,000 23,000 28,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating income (loss) Add (deduct) foxed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income