ZuoTi.Pro
Question

3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2. Year 1Walsh Company manufactures and sells one product. The following information pertains to each of the companys first two yearsb. Prepare an income statement for year 1 and year 2. Walsh Company Income Statement Year 1 Year 2 Variable expenses Total va

2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answers to

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

1)-A Assume Firm is Using Variable Costing Direct Material Direct Labour Variable Manufacturing Overhead 221 22 141 431 43 Un2)-A Assume the Absorption costing Calculation of Unit cost Under Absorption Costing Year 1 Year 2 Direct Material Direct Lab3 Year 2 30000 3 Reconcile the variable costing and absorption costing Net income Year 1 Variable Costing Income(Loss) -70000

2 0
Add a comment
Know the answer?
Add Answer to:
3. Reconcile the difference between variable costing and absorption costing net operating income in year 1...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Exercise 5-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO5-1, LO5-2, LO5-3] Walsh...

    Exercise 5-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO5-1, LO5-2, LO5-3] Walsh 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: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ 240,000 60,000 During its first year of operations, Walsh produced 50,000 units and sold...

  • Exercise 4-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2, LO4-3]...

    Exercise 4-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2, LO4-3] Walsh 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: Direct materials $ 23 Direct labor $ 11 Variable manufacturing overhead $ 5 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 90,000 During its first...

  • During Heaton Company's first two years of operations, the company reported absorption costing net operating income...

    During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: $ Sales (@ $60 per unit) Cost of goods sold (@ $39 per unit) Gross margin Selling and administrative expenses* Net operating income Year 1 $1,020,000 663,000 357,000 299,000 $ 58,000 Year 2 1,620,000 1,053,000 567,000 329,000 $ 238,000 *$3 per unit variable; $248,000 fixed each year. The company's $39 unit product cost is computed as follows: $ Direct materials Direct labor...

  • Whitman Company has just completed its first year of operations. The company's absorption costing income statement...

    Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (40,000 units * $4110 per unit) Cost of goods sold (40,000 units * $22 per unit) $1,644,000 880,000 Gross margin Selling and administrative expenses 764,000 460,000 Net operating income $304,000 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $22...

  • 1) what is the amount of the difference between the variable costing and absorption costing net...

    1) what is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? 2) Whats the company's break-even point in unit sales? is the above or below the actual unit sales? Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs...

  • During Heaton Company's first two years of operations, the company reported absorption costing net operating income...

    During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: Sales (@ $61 per unit) Cost of goods sold (@ $39 per unit) Year 1 945,500 604,500 Year 2 $ 1,555,500 9 94,500 Gross margin Selling and administrative expenses 341,099, 288,304 561.000 318,300 Net operating income $ 52,700 $ 242,700 * $3 per unit variable; $241,800 fixed each year, The company's $39 unit product cost is computed Direct materials Direct labor Variable...

  • During Heaton Company's first two years of operations, the company reported absorption costing net operating income...

    During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $39 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $1,071,000 663,000 408,000 305,000 $ 103,000 Year 2 $ 1,701,000 1,053,000 648,000 335,000 $ 313,000 * $3 per unit variable; $254,000 fixed each year. The company's $39 unit product cost is computed as follows: Direct materials Direct labor...

  • 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1...

    1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Walsh Company manufactures and...

  • Variable costs per unit: Manufacturing: Direct materials $ 21 Direct labor $ 13 Variable manufacturing overhead...

    Variable costs per unit: Manufacturing: Direct materials $ 21 Direct labor $ 13 Variable manufacturing overhead $ 3 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 400,000 Fixed selling and administrative expenses $ 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $89 per unit. Required:...

  • During Heaton Company's first two years of operations, it reported absorption costing net operating income as...

    During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (e $63 per unit) Cost of goods sold ( 540 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $1,071,000 680,000 391.000 301.000 $ 190,0001 Year 2 $1,701,000 1,080,000 621,000 331,000 $ 290,000 ances *$3 per unit variable: $250,000 fixed each year. The company's $40 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT