Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direc Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($331,240 + 2,800 units) Total variable selling expenses ($12 per unit sold) Total fixed general and administrative 2,800 1,700 $ 670.00 50.00 labor per unit 80.00 30.00 118.30 20,400.00 78,000.00 expenses Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning invento 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Reg 3 Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Full Absorption Income Statement Sales Cost of Goods Sold Gross Margin Req 2A Req 2B Req 3 Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Variable Costing Income Statement Contribution Margin Less: Fixed Costs Net Operating Income Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direc Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($331,240 + 2,800 units) Total variable selling expenses ($12 per unit sold) Total fixed general and administrative 2,800 1,700 $ 670.00 50.00 labor per unit 80.00 30.00 118.30 20,400.00 78,000.00 expenses Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning invento 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Reg 3 Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Full Absorption Income Statement Sales Cost of Goods Sold Gross Margin Req 2A Req 2B Req 3 Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Variable Costing Income Statement Contribution Margin Less: Fixed Costs Net Operating Income Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Consider the following information for Presidio Inc.'s most recent year of operations.
Number of units produced
Number of units sold
Sales price per unit
Direct materials per unit
labor per unit
2,800
1,700
$
670.00
50.00
80.00
30.00
Direc
Variable manufacturing overhead per unit
Fixed manufacturing overhead per unit
($331,240 + 2,800 units)
Total variable selling expenses ($12 per
unit sold)
Total fixed general and administrative
118.30
20,400.00
78,000.00
expenses
Required:
2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory.
3. Compute the difference in profit between full absorption costing and variable costing.
Complete this question by entering your answers in the tabs below.
Reg 2A
Req 2B
Reg 3
Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
Presidio, Inc.
Full Absorption Income Statement
Sales
Cost of Goods Sold
Gross Margin
Reg 2A
Req 2B
Req 3
Complete a variable costing income statement for Presidio. Assume there was no beginning inventory.
Presidio, Inc.
Variable Costing Income Statement
Contribution Margin
Less: Fixed Costs
Net Operating Income
Required:
2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory.
3. Compute the difference in profit between full absorption costing and variable costing.
Complete this question by entering your answers in the tabs below.
Req 2A
Req 2B
Req 3
Compute the difference in profit between full absorption costing and variable costing.
Difference in Profit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education