3. Hi-Tech 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 expense Fixed Cost Per Year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $15 $5 $5 $250,000 $80,000 During its first year of operations, Hi-Tech produced 50,000 units and sold 35,000 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 Tk.80 per unit. Required: I. Assume the company uses variable costing: Prepare the appropriate income statement for Year 1 and Year 2.0 II. Assume the company uses absorption costing: Prepare the appropriate income statement for Year 1 and Year 2. III. Prepare reconciliation statement for Year 1 and Year 2.

3. Hi-Tech 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 expense Fixed Cost Per Year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $15 $5 $5 $250,000 $80,000 During its first year of operations, Hi-Tech produced 50,000 units and sold 35,000 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 Tk.80 per unit. Required: I. Assume the company uses variable costing: Prepare the appropriate income statement for Year 1 and Year 2.0 II. Assume the company uses absorption costing: Prepare the appropriate income statement for Year 1 and Year 2. III. Prepare reconciliation statement for Year 1 and Year 2.

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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