Requlred:

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

assumes that 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.

Req $1B$

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

$[$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:

During its first year of operations, O'Brien produced $97,000$ units and sold $77,000$ units. During its second year of

operations, it produced $81,000$ units and sold $96,000$ units. In its third year. $O$ 'Brien produced $83,000$ units and sold

$78,000$ units. The selling price of the company's product is $$79$ per unit.

Requlred:

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

assumes that 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.

Req $1A$

Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$