In the year 2022, LOGO Company sells its products at P 1,250 each unit. The company did not increase the unit price for the last 3 years. Unit sold each year is as follows: 2022 — 100 units; 2021 - 80 units; and 2020 60 units. They produce an average of 80 units per year. Variable manufacturing cost is P 200 per unit while variables sales costs is P125 per unit. In addition, LOGO Company incurred P30,000 of fixed overhead and P40,000 fixed selling expenses. The net income reported, under direct costing, of LOGO Company is__. The net income reported, under absorption costing, of LOGO Company is__.
In the year 2022, LOGO Company sells its products at P 1,250 each unit. The company did not increase the unit price for the last 3 years. Unit sold each year is as follows: 2022 — 100 units; 2021 - 80 units; and 2020 60 units. They produce an average of 80 units per year. Variable manufacturing cost is P 200 per unit while variables sales costs is P125 per unit. In addition, LOGO Company incurred P30,000 of fixed overhead and P40,000 fixed selling expenses. The net income reported, under direct costing, of LOGO Company is__. The net income reported, under absorption costing, of LOGO Company is__.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the year 2022, LOGO Company sells its products at P 1,250 each unit. The company did not increase the unit price for the last 3 years. Unit sold each year is as follows: 2022 — 100 units; 2021 - 80 units; and 2020 60 units. They produce an average of 80 units per year. Variable manufacturing cost is P 200 per unit while variables sales costs is P125 per unit. In addition, LOGO Company incurred P30,000 of fixed overhead and P40,000 fixed selling expenses.
The net income reported, under direct costing, of LOGO Company is__.
The net income reported, under absorption costing, of LOGO Company is__.
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