Haas Company manufactures and sells one product. The following information pertains to each of the company's...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648a8cbe3304_8356648a8cb32fe8.jpg)
Transcribed Image Text:
Haas 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 $ 14 $6 $ 510,000 $ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $60 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B 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. Sales Haas Company Absorption Costing Income Statement Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Year 1 Year 2 Year 3 $ 3,600,000 $ 3,000,000 $ 3,900,000 3,600,000 3,000,000 260,000 $ 3,600,000 $ 2,740,000 $ 3,900,000 275,000 3,625,000 Haas 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 $ 14 $6 $ 510,000 $ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $60 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B 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. Sales Haas Company Absorption Costing Income Statement Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Year 1 Year 2 Year 3 $ 3,600,000 $ 3,000,000 $ 3,900,000 3,600,000 3,000,000 260,000 $ 3,600,000 $ 2,740,000 $ 3,900,000 275,000 3,625,000
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
1. CNA Industrial Group Corp. carries two products. Total sales are estimated to be 10,000 regular + 5,000 large units. Fixed costs are $20,000. Sales price of regular is $70 with variable expenses...
-
Define a concept for a new venture using the four components discussed in the chapter: product/ service, customer, benefit, and distribution. Conduct a quick test on some potential customers through...
-
The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the calculations on the companys variance analysis calculations for the...
-
Costco Wholesale Corporation operates membership warehouses. As of August 30, 2015 Costco operated 686 warehouses, with 480 in the United States. In addition, the store sells merchandise through its...
-
Pinsetters Supply is a merchandiser of three different products. The companys February 28 inventories are footwear, 15,500 units; sports equipment, 70,000 units; and apparel, 40,000 units. Management...
-
ndividuals in the active for life stage of the long - term athlete development model do NOT participate in competitive events.
-
The following are goals scored by a soccer team at each game in their recent season. 0 1 2 3 4 LO 00 0 0 0 0 0 00 1 1 1 1 2 3 5 0 1 1 2 4 23 Complete the frequency table. Goals Frequency 2 2 23 3 23...
-
Brown & Company, CPAs, issued an unqualified opinion on the financial statements of its client King Corporation. Based on the strength of Kings financial statements, Safe Bank loaned King $500,000....
-
Records can be used as important evidentiary tools. The integrity and completeness of a medical record can be crucial in reconstructing the events surrounding alleged negligence.
-
Under the Private Securities Litigation Reform Act of 1995, Baker, CPA, reported certain uncorrected illegal acts to Supermarts board of directors. Baker believed that failure to take remedial action...
-
Although electronic medical records improve the ease and efficiency with which data are compiled and shared, they also pose confidentiality risks.
-
Lead time for some SKU is always 5 days, and demand for that SKU is always 50 per day. What is the reorder point for this SKU?
-
Nov 24, 2012. Jackey B, President of Toso Inc. was contemplating over another administration contract that was simply made accessible to him. The agreement could be essential to Tosos' future.2012...
-
2. In the circuit given in Figure 2, i,(t) = 5.67cos(5t)A and v (t) = 70.71 cos(5t 60) V a) Find the equivalent load impedance. State whether the load is inductive or capacitive. b) Calculate the...
-
What is a controlling resistance? How do you determine which resistance, if either, is controlling?
-
In Problem \(15 . \mathrm{H} 5\) changing the pressure changes the diffusivities but does not change the Henry's law constant of ammonia. However, changing the pressure does change the surface...
-
The constant in Eq. (15-22b) is \(1.173 \times 10^{-16}\), which agrees with Geankoplis et al. (2018). However, Cussler (2009) and Wankat and Knaebel (2019) use a constant of 7.4 \(\times 10^{-8}\)....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App