Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Direct materials per unit Sales price per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($307,060 ÷ 2,600 units) Total variable selling expenses ($10 per unit sold) Total fixed general and administrative expenses 2,600 1,600 $ 650.00 75.00 105.00 55.00 118.10 16,000.00 76,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin 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 Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Incorporated Full Absorption Income Statement Sales Cost of Goods Sold Gross Margin Less: Non-Manufacturing Expenses $ 1,040,000 Net Operating Income < Req 2A Req 2B >

Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Direct materials per unit Sales price per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($307,060 ÷ 2,600 units) Total variable selling expenses ($10 per unit sold) Total fixed general and administrative expenses 2,600 1,600 $ 650.00 75.00 105.00 55.00 118.10 16,000.00 76,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin 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 Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Incorporated Full Absorption Income Statement Sales Cost of Goods Sold Gross Margin Less: Non-Manufacturing Expenses $ 1,040,000 Net Operating Income < Req 2A Req 2B >

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Description: Consider the following information for Presidio Incorporated's most recent year of operations.Number of units producedNumber of units soldSales price per unitDirect materials per unitDirect labor per unitVariable manufacturing overhead per unitFixed

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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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

Consider the following information for Presidio Incorporated's most recent year of operations.
Number of units produced
Number of units sold
Sales price per unit
Direct materials per unit
Direct labor per unit
Variable manufacturing overhead per unit
Fixed manufacturing overhead per unit ($307,060 ÷ 2,600 units)
Total variable selling expenses ($10 per unit sold)
Total fixed general and administrative expenses
2,600
1,600
$ 650.00
75.00
105.00
55.00
118.10
16,000.00
76,000.00
Required:
2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
2-b. Complete a contribution margin 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
Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
Presidio, Incorporated
Full Absorption Income Statement
Sales
Cost of Goods Sold
Gross Margin
Less: Non-Manufacturing Expenses
$ 1,040,000
Net Operating Income
< Req 2A
Req 2B >

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