6. Award: 10.00 points Company manufactures and sells one product. The following

Question

6. Award: 10.00 points Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations Variable costs per unit Manufacturing 24 17 Direct materials Direct labor Variable selling and administrative Fixed manufacturing overhead Variable manufacturing overhead Fixed costs per year $400,000 50,000 Fixed selling and administrative expenses During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it 40,000 units and sold 50,000 units The selling-price of the company's product is $55 per unit Required: 1. Assume the company uses variable c osting a Compute the unit product cost for Year 1 and Year 2 6. Prepare an income statement for Year 1 and Year2 a. Compute the unit product cost for Year 1 and Year 2. 3 Reconcile the difference between variable costing and absorption oósting net operating income in Year 1 Assume the company uses absorption costing: b. Prepare an income statement for Year 1 and Year 2 Complete this -question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Year 1 Year 2 Unit product cost

Explanation / Answer

Calculate unit product cost :

Year 1 Year 2 Direct material 24 24 Direct labour 17 17 Variable manufacturing overhead 3 3 Unit product cost 44 44

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