2. B Company produces a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Production: Direct materials P1, 200 1, 400 Direct labor Variable manufacturing overhead Variable selling and administrative 500 200 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Р4, 500, 000 4, 000, 000 During the year, the company produced 10, 000 units. The company has a beginning inventory of 40, 000 and an ending inventory of 5, 000. Required: 1. Prepare an Income Statement using a. Absorption Costing and b. Variable Costing

2. B Company produces a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Production: Direct materials P1, 200 1, 400 Direct labor Variable manufacturing overhead Variable selling and administrative 500 200 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Р4, 500, 000 4, 000, 000 During the year, the company produced 10, 000 units. The company has a beginning inventory of 40, 000 and an ending inventory of 5, 000. Required: 1. Prepare an Income Statement using a. Absorption Costing and b. Variable Costing

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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