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Prepare January and February income statements under Absorption and Variable Costing Nagsumikap Naman Ako Co. assembles and sells genetically modified dinosaurs and uses standard costing. Actual data relating to January and February 2021 are as follows: February Unit data: Beginning inventory Production January 150 500 Sales 650 Direct material cost is P67 per unit, Direct labor is P15 per unit, and variable overhead is P18 per unit. Annual fixed manufacturing costs is P240,000 while monthly marketing cost is P6,000. Variable selling and administrative cost per unit is P30 per unit. 500 350 The selling price per dinosaur is P240. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.

Prepare January and February income statements under Absorption and Variable Costing Nagsumikap Naman Ako Co. assembles and sells genetically modified dinosaurs and uses standard costing. Actual data relating to January and February 2021 are as follows: February Unit data: Beginning inventory Production January 150 500 Sales 650 Direct material cost is P67 per unit, Direct labor is P15 per unit, and variable overhead is P18 per unit. Annual fixed manufacturing costs is P240,000 while monthly marketing cost is P6,000. Variable selling and administrative cost per unit is P30 per unit. 500 350 The selling price per dinosaur is P240. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.

Managerial Accounting: The Cornerstone of Business Decision-Making
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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Prepare January and February income statements under Absorption and Variable Costing Nagsumikap Naman Ako Co. assembles and sells genetically modified dinosaurs and uses standard costing. Actual data relating to January and February 2021 are as follows: Unit data: Beginning inventory Production January February 500 350 150 500 Sales 650 Direct material cost is P67 per unit, Direct labor is P15 per unit, and variable overhead is P18 per unit. Annual fixed manufacturing costs is P240,000 while monthly marketing cost is P6,000. Variable selling and administrative cost per unit is P30 per unit. The selling price per dinosaur is P240. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
Transcribed Image Text:Prepare January and February income statements under Absorption and Variable Costing Nagsumikap Naman Ako Co. assembles and sells genetically modified dinosaurs and uses standard costing. Actual data relating to January and February 2021 are as follows: Unit data: Beginning inventory Production January February 500 350 150 500 Sales 650 Direct material cost is P67 per unit, Direct labor is P15 per unit, and variable overhead is P18 per unit. Annual fixed manufacturing costs is P240,000 while monthly marketing cost is P6,000. Variable selling and administrative cost per unit is P30 per unit. The selling price per dinosaur is P240. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
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