47. PIBISCO Inc. manufactures and sells cookies at P12.50 per box, with each box containing 100 cookies. Income statement presented to shareholders for the quarter just ended are as follows: 85,000 Sales (400 boxes) Cost of goods sold Gross margin (3,200) Selling and administrative P1,800 (800) Net income P1,000 expenses The company produced 500 boxes during the quarter. Variable manufacturing costs are P5.25 per box and fixed manufacturing overhead for the quarter totaled P1,375. Variable selling and administrative expenses are P0.90 per box. What is the company's direct costing net income? A. 9725 B. P1,000 C. P1,275 D. P2,265 E. 92,540

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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47. PIBISCO Inc. manufactures and sells cookies at P12.50 per box, with each box containing 100 cookies. Income statement presented
to shareholders for the quarter just ended are as follows:
85,000
Sales (400 boxes)
Cost of goods sold
Gross margin
(3,200)
Selling and administrative expenses
P1,800
(800)
Net income
P1,000
The company produced 500 boxes during the quarter. Variable manufacturing costs are P5.25 per box and fixed manufacturing
overhead for the quarter totaled P1,375. Variable selling and administrative expenses are P0.90 per box.
What is the company's direct costing net income?
A. P725
B. P1,000
C. P1,275
D. P2,265
E. 92,540
Transcribed Image Text:47. PIBISCO Inc. manufactures and sells cookies at P12.50 per box, with each box containing 100 cookies. Income statement presented to shareholders for the quarter just ended are as follows: 85,000 Sales (400 boxes) Cost of goods sold Gross margin (3,200) Selling and administrative expenses P1,800 (800) Net income P1,000 The company produced 500 boxes during the quarter. Variable manufacturing costs are P5.25 per box and fixed manufacturing overhead for the quarter totaled P1,375. Variable selling and administrative expenses are P0.90 per box. What is the company's direct costing net income? A. P725 B. P1,000 C. P1,275 D. P2,265 E. 92,540
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