Question: Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. Note: Round your intermediate calculations and






Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. Note: Round your intermediate calculations and final answers to 2 decimal places. Compute the company's break-even point in unit sales. Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. Note: Round your intermediate calculations to 2 decimal places. Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000 units and sold 30,000 units. In its third year, Haas produced 20,000 units and sold 45,000 units. The selling price of the company's product is $54 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses variable costing: 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. 3. Assume the company uses absorption costing: 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. \begin{tabular}{|c|c|c|c|c|c|} \hline Req 1 & Req 2A & Req 2B & Req 3A & Req 3B & \\ \hline \multicolumn{6}{|c|}{ Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company us } \\ \hline \multicolumn{6}{|c|}{ Haas Company } \\ \hline \multicolumn{6}{|c|}{ Variable Costing Income Statement } \\ \hline & & & Year 1 & Year 2 & Year 3 \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & 0 & 0 & 0 \\ \hline & & & 0 & 0 & 0 \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & 0 & 0 & 0 \\ \hline Net operatir & me (loss) & & $ & $ & $ \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
