chapter 7 question 13

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 Fixed selling and administrative expenses $ $ $ $ 29 15 6 $540,000 $160,000 During its first year of operations. O'Brien produced 91,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 86.000 units. In its third year O'Brien produced 86,000 units and sold 81000 units. The selling price of the company's product is $76 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 that 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. 4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words assumes that 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. Req 4A Reg 46 Compute the unit product cost for Year 1 Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.) Unit Product Cost Year 1 Year 2 Yoar 3 $ 50 00 RAA Req 48 > 7. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last in first-out. In other words, it assumes that 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. Reg 4 Req 48 Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places) O'Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3 0 0 0 $ 0$ 0$ 0