Summarized data for Walrus Co. for its first year of operations are: Sales (110,000 units) $6,600,000 Production Costs (132,000 units): Direct Material 2,112,000 Direct Labor 1,584,000 Manufacturing Overhead: Variable 990,000 Fixed 264,000 Selling and Administrative Expenses: Variable 275,000 Fixed 473,000 A. Prepare an income statement under absorption costing.

Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (27,200 x $96) $2,611,200 Manufacturing costs (27,200 units): Direct materials 1,572,160 Direct labor 372,640 Variable factory overhead 174,080 Fixed factory overhead 206,720 Fixed selling and administrative expenses 56,200 Variable selling and administrative expenses 68,000 The company is evaluating a proposal to manufacture 30,400 units instead of 27,200 units, thus creating an ending inventory of 3,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 27,200 and 30,400 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. Marshall…

Comet Canisters, Inc. has collected the following data for the current year: Beginning Finished Goods Inventory Units produced Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs 50 units 570 units 620 units $140 per unit $16 per unit - $18 per unit $11 per unit $15,600 per year $5 per unit $14,000 per year What is the unit product cost using absorption costing? (Round your answer to the nearest cent.) OA. $45.00 O B. $72 37 OC. $56.37 D. $101.93

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 (@ $41 per unit) Gross margin Selling and administrative expenses* Net operating income * $3 per unit variable; $246,000 fixed each year. The company's $41 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($378,000 21,000 units) Absorption costing unit product cost $ 7 12 4 18 $ 41 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced Units sold 21,000 16,000 21,000 26,000 Year 1 $ 960,000 656,000 Year 2 $ 1,560,000 1,066,000 304,000 294,000 $ 10,000 494,000 324,000 $ 170,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating Income in Year 1 and In Year 2? 3. Reconcile the absorption costing and the variable costing net…