Please answer all Bairstow Company manufactures and sells a single product. The following costs wereincurred during 2021, the company's first year of operations:Variable Costs per unit:Production:Direct materialsDirect labourVariable Manufacturing OverheadSelling and administrativeFIXED COSTS PER YEARManufacturing OverheadSelling and administrative$6.00$9.00$3.00$ 4.00$ 300,000$ 190,000During 2021, the company produced 25,000 units and sold 20,000 units. The selling price ofthe company's product is $ 50 per unit.2. Assume the company uses the variable costing method:a. Compute the cost to produce one unit of product.b. Prepare an income statement for 2021-Required: 1. Assume that the company uses the absorption costing method:a. Compute the cost to produce one unit of product.b. Prepare an income statement for 20213. Reconcile the variable costing and absorption costing operating incomes. Explainthe reasons for the differences between the variable costing and absorption costing netincomes.

The income statement is one of the financial statements of the business which tells about the…

Bairstow Company manufactures and sells a single product. The following costs were incurred during 2021, the company's first year of operations: Variable Costs per unit: Production: Direct materials Direct labour Variable Manufacturing Overhead Selling and administrative FIXED COSTS PER YEAR Manufacturing Overhead Selling and administrative $6.00 $9.00 $3.00 $ 4.00 HAR $ 300,000 $ 190,000 During 2021, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $ 50 per unit. Required: 1. Assume that the company uses the absorption costing method: a. Compute the cost to produce one unit of product. b. Prepare an income statement for 2021 2. Assume the company uses the variable costing method: a. Compute the cost to produce one unit of product.

Bairstow Company manufactures and sells a single product. The following costs were incurred during 2021, the company's first year of operations: Variable Costs per unit: Production: Direct materials Direct labour Variable Manufacturing Overhead Selling and administrative FIXED COSTS PER YEAR Manufacturing Overhead Selling and administrative $6.00 $9.00 $3.00 $ 4.00 HAR $ 300,000 $ 190,000 During 2021, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $ 50 per unit. Required: 1. Assume that the company uses the absorption costing method: a. Compute the cost to produce one unit of product. b. Prepare an income statement for 2021 2. Assume the company uses the variable costing method: a. Compute the cost to produce one unit of product.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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