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22/06/2023 Q1. ABC Company is a manufacturing company that produces product (X) and sell it for $100/ unit. The following is data related to 2019 and 2020, the first years of production. 2019 2020 Year Units Data: Units sold Units produced Costs Data: Variable Manufacturing cost Fixed Manufacturing cost Variable marketing cost Fixed marketing cost Fixed administrative cost 8,000 units 10,000 units $300,000 $200,000 $50,000 $50,000 $100,000 12,000 units 14,000 units $420,000 $200,000 $70,000 $50,000 $100,000 Required: 1. Prepare the income statements for ABC Company for 2019 and 2020 financial periods using: a. the Absorption approach b. the variable approach

22/06/2023 Q1. ABC Company is a manufacturing company that produces product (X) and sell it for $100/ unit. The following is data related to 2019 and 2020, the first years of production. 2019 2020 Year Units Data: Units sold Units produced Costs Data: Variable Manufacturing cost Fixed Manufacturing cost Variable marketing cost Fixed marketing cost Fixed administrative cost 8,000 units 10,000 units $300,000 $200,000 $50,000 $50,000 $100,000 12,000 units 14,000 units $420,000 $200,000 $70,000 $50,000 $100,000 Required: 1. Prepare the income statements for ABC Company for 2019 and 2020 financial periods using: a. the Absorption approach b. the variable approach

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Section: 81 22/06/2023 Q1. ABC Company is a manufacturing company that produces product (X) and sell it for $100/ unit. The following is data related to 2019 and 2020, the first years of production. 2019 2020 Year Units Data: Units sold Units produced Costs Data: Variable Manufacturing cost Fixed Manufacturing cost Variable marketing cost Fixed marketing cost Fixed administrative cost 8,000 units 10,000 units $300,000 $200,000 $50,000 $50,000 $100,000 12,000 units 14,000 units $420,000 $200,000 $70,000 $50,000 $100,000 Required: 1. Prepare the income statements for ABC Company for 2019 and 2020 financial periods using: a. the Absorption approach b. the variable approach 2. Explain the differences in the
Transcribed Image Text:Section: 81 22/06/2023 Q1. ABC Company is a manufacturing company that produces product (X) and sell it for $100/ unit. The following is data related to 2019 and 2020, the first years of production. 2019 2020 Year Units Data: Units sold Units produced Costs Data: Variable Manufacturing cost Fixed Manufacturing cost Variable marketing cost Fixed marketing cost Fixed administrative cost 8,000 units 10,000 units $300,000 $200,000 $50,000 $50,000 $100,000 12,000 units 14,000 units $420,000 $200,000 $70,000 $50,000 $100,000 Required: 1. Prepare the income statements for ABC Company for 2019 and 2020 financial periods using: a. the Absorption approach b. the variable approach 2. Explain the differences in the
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