In previous year, Seventy Up, Inc. operated at 250,000 units. The following income ment was provided for you to plan your next year's operation: Sales Cost of goods sold Gross profit Operating expenses, variable costs is P125,000 Net income before income tax P2,000,000 1,500,000 P 500,000 225,000 P 275,000 The fixed manufacturing cost in the cost of goods sold is P3.00 Instructions: Revise the income statement to reflect a variable costing method.
In previous year, Seventy Up, Inc. operated at 250,000 units. The following income ment was provided for you to plan your next year's operation: Sales Cost of goods sold Gross profit Operating expenses, variable costs is P125,000 Net income before income tax P2,000,000 1,500,000 P 500,000 225,000 P 275,000 The fixed manufacturing cost in the cost of goods sold is P3.00 Instructions: Revise the income statement to reflect a variable costing method.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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