hw6 q2 req 1-3

During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 $ 1,159,000 684.000 475,000 310,000 $ 165,000 Year 2 $ 1,769,000 1,044,000 725,000 340,00 $385,000 Sales (e $61 per unit) Cost of goods sold ( 536 per unit) Gross margin selling and administrative expenses Net operating income *$3 per unit variable: $253,000 fixed each year. The company's $36 unit product cost is computed as follows. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5312,000 + 24,098 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 Units produced 24,000 24,800 29,000 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 22 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. $9 12 2 13 $36 Year 2 19,000 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 Requited Required 2 > cauris, lureported absorption costing net op Sales (@ $61 per unit) Cost of goods sold (@ $36 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,159,000 684,000 475,000 310,000 $ 165,000 Year 2 $ 1,769,000 1,044,000 725,000 340,000 $ 385,000 $3 per unit variable: $253,000 fixed each year. The company's $36 unit product cost is computed as follows: $ 9 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($312,000 - 24,000 units) Absorption costing unit product cost NN 13 $ 36 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 24,000 19,000 Year 2 24,000 29,000