McDuffy Paints is a division of Chemical Paint Corporation. The division manufactures nd sells paints used in a wide variety of applications. During the coming year, it expects to wll 30,000 cans for P10 per can. Duffy manages the division. He is considering producing her 30,000 or 50,000 cans during the period. Other information is presented in the schedule r the division, in cans: Beginning inventory Expected sales Selling price s Variable manufacturing cost Fixed manufacturing overhead cost (total) 30,000 P15.00 P 7.00 0000 P150,000 Fixed manufacturing overhead costs per can: Based on 30,000 cans P5.00 per can (P150,000 + 30,000) Based on 50,000 cans P3.00 per can (P150,000 + 50,000) Manufacturing cost per unit Based on 30,000 units P12.00 per can (P7 variable + P5 fixed) Based on 50,000 units Selling and administrative expense (all fixed) P10.00 per can (P7 variable + P3 fixed) P25,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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33
McDuffy Paints is a division of Chemical Paint Corporation. The division manufactures
and sells paints used in a wide variety of applications. During the coming year, it expects to
ell 30,000 cans for P10 per can. Duffy manages the division. He is considering producing
ether 30,000 or 50,000 cans during the period. Other information is presented in the schedule
fr the division, in cans:
000.01
Beginning inventory
Expected sales
Selling price
Variable manufacturing cost
Fixed manufacturing overhead cost (total)
o to
30,000
P 15.00
000,0
P 7.00
P150,000
nillse
Fixed manufacturing overhead costs per can:
Based on 30,000 cans
Based on 50,000 cans ie P3.00 per can (P150,000 + 50,000)
anobouent
P5.00 per can (P150,000 + 30,000)
Manufacturing cost per unit
Based on 30,000 units
P12.00 per can (P7 variable + P5 fixed)
Based on 50,000 units
Selling and administrative expense (all fixed)
P10.00 per can (P7 variable + P3 fixed)
alloe
P25,000
00,00
nstructions:
Prepare an variable costing income statement with one column showing the results if
3000 cans are produced, and one column showing the results if 50,000 cans are produced.
Transcribed Image Text:33 McDuffy Paints is a division of Chemical Paint Corporation. The division manufactures and sells paints used in a wide variety of applications. During the coming year, it expects to ell 30,000 cans for P10 per can. Duffy manages the division. He is considering producing ether 30,000 or 50,000 cans during the period. Other information is presented in the schedule fr the division, in cans: 000.01 Beginning inventory Expected sales Selling price Variable manufacturing cost Fixed manufacturing overhead cost (total) o to 30,000 P 15.00 000,0 P 7.00 P150,000 nillse Fixed manufacturing overhead costs per can: Based on 30,000 cans Based on 50,000 cans ie P3.00 per can (P150,000 + 50,000) anobouent P5.00 per can (P150,000 + 30,000) Manufacturing cost per unit Based on 30,000 units P12.00 per can (P7 variable + P5 fixed) Based on 50,000 units Selling and administrative expense (all fixed) P10.00 per can (P7 variable + P3 fixed) alloe P25,000 00,00 nstructions: Prepare an variable costing income statement with one column showing the results if 3000 cans are produced, and one column showing the results if 50,000 cans are produced.
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