During the previous year, Casually Company had the following data: Units in beginning inventory - Units produced 10,000 Units sold (P60 per unit) 8,800 Variable costs per unit: Direct materials P 12 Direct labor 7 Variable overhead 5 Fixed costs: Fixed overhead per unit produced P 8 Fixed selling and administrative expenses P 138,000 Required: 1. Prepare an income statement using absorption costing. 2. Prepare an income statement using variable costing.
During the previous year, Casually Company had the following data:
Units in beginning inventory -
Units produced 10,000
Units sold (P60 per unit) 8,800
Variable costs per unit:
Direct materials P 12
Direct labor 7
Variable
Fixed costs:
Fixed overhead per unit produced P 8
Fixed selling and administrative expenses P 138,000
Required:
1. Prepare an income statement using absorption costing.
2. Prepare an income statement using variable costing.
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