Compute the Variable costing Unit Product cost | ||||||||
Year 1 | Year 2 | |||||||
Direct Material | 9 | 9 | ||||||
Direct labour | 9 | 9 | ||||||
Variable Manufacturing overheads | 4 | 4 | ||||||
Variable costing unit prroduct cost | 22 | 22 | ||||||
Construct The Variable Costing Income Statement under FIFO | ||||||||
YEAR 1 | YEAR 2 | |||||||
Sales | 1,240,000 | 1,860,000 | ||||||
Less: Variable cost | ||||||||
variable cost of goods sold | 440,000 | 660,000 | ||||||
Variable selling expense | 60,000 | 500,000 | 90,000 | 750,000 | ||||
Contribution margin | 740,000 | 1,110,000 | ||||||
Fixed expense: | ||||||||
Fixed Manufacturing overheads | 325,000 | 325,000 | ||||||
Fixed selling expense | 246,000 | 246,000 | ||||||
Net operating Income | 169,000 | 539,000 | ||||||
Reconciliation Statement: | ||||||||
Year1 | YEar2 | |||||||
Net income as per Variable costing | 169000 | 539000 | ||||||
Add: Fixed oh deferred | 65000 | |||||||
Less: Fixed Oh released | 65000 | |||||||
Net Income as per Absorption costing | 234000 | 474000 | ||||||
Check my work During Heaton Company's first two years of operations, it reported absorption costing net...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Year 1 Year 2 Sales ( $63 per unit) Cost of goods sold ( $37 per unit) Gross margin Selling and administrative expenses $. 1,260,000 740,000 520,000 312,000 1,890,000 1,110,000 780,000 342,000 Net operating income $ 1208,000 438,000 "$3 per unit variable; $252,000 fixed each year. The company's $37 unit product cost is computed as follows Direct materials Direct labor Variable manufacturing overhead...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales ( $63 per unit) Cost of goods sold ( $35 per unit) Gross margin Selling and administrative expenses $ 1,260,000 700,000 $ 1,890,000 1,050,000 840,000 338,000 560,000 308,000 $ \252,000\ $ 502,000 Net operating income *$3 per unit variable; $248,000 fixed each year. The company's $35 unit product cost is computed as follows: Direct materials 5 Direct labor...
During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 1,260,000 $ 1,890,000 Cost of goods sold (@ $35 per unit) 700,000 1,050,000 Gross margin 560,000 840,000 Selling and administrative expenses* 306,000 336,000 Net operating income $ \254,000\ $ 504,000 * $3 per unit variable; $246,000 fixed each year. The company’s $35 unit product cost is computed as follows: Direct materials $ 7...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $43 per unit) Gross margin Selling and administrative expenses* Net operating income Year 1 $ 945,000 645,000 300,000 294,000 $ 6,000 Year 2 $1,575,000 1,075,000 500,000 324,000 $ 176,000 *$3 per unit variable: $249,000 fixed each year. The company's $43 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@$60 per unit) 900,000 $ 1,500,000 Cost of goods sold (@$42 per unit) 630,000 1,050,000 Gross margin 270,000 450,000 Selling and Admin expense 293,000 323,000 Net operating income (23,000) 127,000 *$3 per unit variable: $248,000 fixed each year. The company's $42 unit product is computer as follows: Direct materials $ 6 Direct labor 13 Variable manufacturing overhead 5...
Check During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: $ Sales (@ $61 per unit) Cost of goods sold (@ $41 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 1,098,000 738,000 360,000 308,00e 52,000 Year 2 $1,708,000 1,148, cee 560,000 338,000 $ 222,000 *$3 per unit variable: $254,000 fixed each year. The company's $41 unit product cost is computed as follows: Direct materials Direct labor Variable...
During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $62 per unit) $ 930,000 $ 1,550,000 Cost of goods sold (@ $35 per unit) 525,000 875,000 Gross margin 405,000 675,000 Selling and administrative expenses* 293,000 323,000 Net operating income $ \112,000\ $ 352,000 * $3 per unit variable; $248,000 fixed each year. The company’s $35 unit product cost is computed as follows: Direct materials $ 7...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $60 per unit) Cost of goods sold (@ $43 per unit) Gross margin Selling and administrative expenses* Net operating income Year 1 $ 1,080,000 774,000 306,000 299,000 $ 7,000 Year 2 $1,680,000 1,204,000 476,000 329,000 $ 147,000 * $3 per unit variable; $245,000 fixed each year. The company's $43 unit product cost is computed as follows: Direct materials Direct labor Variable...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: $ $ Sales (@$60 per unit) Cost of goods sold ($38 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 1,140,000 722,000 418,000 386,00 226,000 Year 2 1,740,000 1,102,000 638,000 336,000 476,000 *$3 per unit variable: $249,000 fixed each year, The company's $38 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing...
During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $62 per unit) $ 1,240,000 $ 1,860,000 Cost of goods sold (@ $45 per unit) 900,000 1,350,000 Gross margin 340,000 510,000 Selling and administrative expenses* 313,000 343,000 Net operating income $ \27,000\ $ 167,000 * $3 per unit variable; $253,000 fixed each year. The company’s $45 unit product cost is computed as follows: Direct materials $ 9...