Case $6-29($Algo$)$ Variable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1,$ Case $6-29($Algo$)$ Variable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1,$

LO$6-2]$

$[$The following information applles to the questlons 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:Manufacturing: Direct labor $ $18$Variable selling and administrative $$4$

Fixed costs per year:Fixed selling and administrative expenses $ $180,000$During its first year of operations, O'Brien produced $95,000$ units and sold $72,000$ units. During its second year of

operations, it produced $76,000$ units and sold $94,000$ units. In its third year, O'Brien produced $88,000$ units and sold

$83,000$ units. The selling price of the company's product is $$77$ per unit.

Case $6-29$ Part$-1($Algo$)$

Required:

Assume the company uses variable costing and a FIFO inventory flow assumption $($FIFO means first$-$In first$-$out; in other words, it

assumes 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 $3.$

Complete this question by entering your answers in the tabs below.

O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first

three years of operations:Manufacturing: Direct labor $ $18$Variable selling and administrative $$4$

Fixed costs per year:Fixed selling and administrative expenses $ $180,000$During its first year of operations, O'Brien produced $95,000$ units and sold $72,000$ units. During its second year of

operations, it produced $76,000$ units and sold $94,000$ units. In its third year, O'Brien produced $88,000$ units and sold

$83,000$ units. The selling price of the company's product is $$77$ per unit.

Case $6-29$ Part$-1($Algo$)$

Required information

Case $6-29($Algo$)$ Varlable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1.$

LO$6-2]$

$[$The following informotion opplies to the questions disployed below.$]$

O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first

three years of operations:Manufacturing: Direct labor $ $18$Variable selling and administrative $$4$

Fixed costs per year:Fixed selling and adninistrative expenses $ $18$e$,$eeeDuring its first yesr of operations, O'Brien produced $95,000$ units and sold $72,000$ units. During its second year of

operations, it produced $76,000$ units and sold $94,000$ units. In its third yesr, O'Brien produced $88,000$ units and sold

$83,000$ units. The selling price of the company's product is $$77$ per unit.

Case $6-29$ Part$-2($Algo$)$

Assume the company uses variable 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 $3.$

Complete this question by entering your answers in the tabs below.

Required $2$ A

Required $2B$

Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$