CooMon Company produces and sells boxed choco cookies. There are 100 pieces of cookies per box. The following income statement shows the result of Common's first year of operations. This income statement was the one included in the company's annual report to the stockholders: Sales (600 boxes at P25 per box) P15,000 Less cost of goods sold (600 boxes @ P16 per box) P9,600 Gross Margin P5,400 Less Selling and administrative expenses P2,400 Income P3,000 Variable and selling administrative expenses is P1.80 per box During the year, the company produced 750 boxes. Variable production costs is P10.50 per box and fixed manufacturing overhead costs totaled P4,125 1. What is the company's variable costing net income? 2. The cost of the ending inventory under variable costing

CooMon Company produces and sells boxed choco cookies. There are 100 pieces of cookies per box. The following income statement shows the result of Common's first year of operations. This income statement was the one included in the company's annual report to the stockholders: Sales (600 boxes at P25 per box) P15,000 Less cost of goods sold (600 boxes @ P16 per box) P9,600 Gross Margin P5,400 Less Selling and administrative expenses P2,400 Income P3,000 Variable and selling administrative expenses is P1.80 per box During the year, the company produced 750 boxes. Variable production costs is P10.50 per box and fixed manufacturing overhead costs totaled P4,125 1. What is the company's variable costing net income? 2. The cost of the ending inventory under variable costing

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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