Jeanne Corporation began its operations on January 1, 2016, and produces a single product that sells for P9.00 per unit. India uses an actual (historical) cost system. 100,000 units were produced and 90,000 units were sold in 2016. There was no work-in-process inventory at December 31, 2016. Manufacturing costs and administrative expenses for 2016 were as follows: Fixed costsVariable costsRaw materials-P1.75 per unit producedDirect labor-P1.25 per unit producedFactory overheadP100,000P0.50 per unit producedSelling and administrative70,000P0.60 per unit produced What would be Indiana’s operating income for 2016 using the direct costing method?Group of answer choicesP271,000P371,000P281,000

Name: Jeanne Corporation began its operations on January 1, 2016, and produc
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Description: Jeanne Corporation began its operations on January 1, 2016, and produces a single product that sells for P9.00 per unit. India uses an actual (historical) cost system. 100,000 units were produced and 90,000 units were sold in 2016. There was no work-

The income statement is prepared to record the revenues and expenses of the current period.

Answered: Jeanne Corporation began its operations…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Jeanne Corporation began its operations on January 1, 2016, and produces a single product that sells for P9.00 per unit. India uses an actual (historical) cost system. 100,000 units were produced and 90,000 units were sold in 2016. There was no work-in-process inventory at December 31, 2016. Manufacturing costs and administrative expenses for 2016 were as follows:

	Fixed costs	Variable costs
Raw materials	-	P1.75 per unit produced
Direct labor	-	P1.25 per unit produced
Factory overhead	P100,000	P0.50 per unit produced
Selling and administrative	70,000	P0.60 per unit produced

What would be Indiana’s operating income for 2016 using the direct costing method?

Group of answer choices

P271,000

P371,000

P281,000

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