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ANSWER THE QUESTION USING PRO-FORMA STATEMENT

ANSWER THE QUESTION USING PRO-FORMA STATEMENT

FINANCIAL ACCOUNTING
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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ANSWER THE QUESTION USING PRO-FORMA STATEMENT  

 

The folllowing information pertains to the product produced by the men's belt division of leather goods corporation: Per unit Selling price Manufacturing costs: P150 Prime costs 75 Variable factory overhead Fixed factory overhead (Total is P80,000) 15 8 Selling and administrative costs: Variable 18 Fixed (Total is 60,000) During the period, the division produced 10,000 unist and sold 9,000 units, both as budgeted. There was no beginning finished goods inventory during the period. There was no difference between the total budgeted and actual fixed costs. Variable manufacturing costs vary with production while variable selling costs vary with sales. Central administration costs are allocated to the different divisions of the company. For this period, central administration cost allocated to men's belt division amounted to 150,000
Transcribed Image Text:The folllowing information pertains to the product produced by the men's belt division of leather goods corporation: Per unit Selling price Manufacturing costs: P150 Prime costs 75 Variable factory overhead Fixed factory overhead (Total is P80,000) 15 8 Selling and administrative costs: Variable 18 Fixed (Total is 60,000) During the period, the division produced 10,000 unist and sold 9,000 units, both as budgeted. There was no beginning finished goods inventory during the period. There was no difference between the total budgeted and actual fixed costs. Variable manufacturing costs vary with production while variable selling costs vary with sales. Central administration costs are allocated to the different divisions of the company. For this period, central administration cost allocated to men's belt division amounted to 150,000
Total Segment A Segment B Sales Less: Variable manufacturing costs Less: Variable non- manufacturing costs Contribution margin Less controllable fixed costs Short-run performance margin Less direct, non controllable fixed costs Segment margin Less common cost allocated to segment Operating income
Transcribed Image Text:Total Segment A Segment B Sales Less: Variable manufacturing costs Less: Variable non- manufacturing costs Contribution margin Less controllable fixed costs Short-run performance margin Less direct, non controllable fixed costs Segment margin Less common cost allocated to segment Operating income
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