In Units 2019 2020 Inventory, Jan 1 7,000 Production 20,000 18,000 Available for Sale 20,000 25,000 Units Sold 13,000 23,000 Inventory, Dec 31 7,000 2,000 Sales (P20/unit) 260,000 460,000 Variable Cost (P7.5/unit) 150,000 135,000 Fixed Manufacturing Cost 50,000 54,000 Selling and Administrative 45,000 75,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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Question

XYZ Company had the following information as of Dec 31, 2019 and 2020.

 

Selling and administrative expenses are 60% fixed and 40% variable.

Required:

(1) Prepare the comparative income statements of XYZ company for 2019 and 2020 using

A. Variable Costing

B. Absorption Costing

(2) Prepare the reconciliation of the net income differences

 

Note: Only 100% sure experts solve it correctly. Complete solutions need to get full marks. take your time, but solve fully and accurately. DO NOT USE AI GENERATED. 

In Units
2019
2020
Inventory, Jan 1
7,000
Production
20,000
18,000
Available for Sale
20,000
25,000
Units Sold
13,000
23,000
Inventory, Dec 31
7,000
2,000
Sales (P20/unit)
260,000
460,000
Variable Cost (P7.5/unit)
150,000
135,000
Fixed Manufacturing Cost
50,000
54,000
Selling and Administrative
45,000
75,000
Transcribed Image Text:In Units 2019 2020 Inventory, Jan 1 7,000 Production 20,000 18,000 Available for Sale 20,000 25,000 Units Sold 13,000 23,000 Inventory, Dec 31 7,000 2,000 Sales (P20/unit) 260,000 460,000 Variable Cost (P7.5/unit) 150,000 135,000 Fixed Manufacturing Cost 50,000 54,000 Selling and Administrative 45,000 75,000
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