Selling and administrative expenses are 60% fixed and 40% variable The following data were taken from the records of ZXC INC. In units 2020 2021 Inventory, January 1 0 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 (₱ 20 per unit) ₱260,000 ₱460,000 Variable manufacturing cost (₱7.50 per unit) 150,000 135,000 Fixed Manufacturing cost 50,000 54,000 Selling and administrative 45,000 75,000 Questions: 1. What is the net income for 2020 under the Variable Costing Method? 2. What is the net income for 2020 under the Absorption Costing Method? 3. What is the net income for 2021 under the Variable Costing Method?
Selling and administrative expenses are 60% fixed and 40% variable The following data were taken from the records of ZXC INC. In units 2020 2021 Inventory, January 1 0 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 (₱ 20 per unit) ₱260,000 ₱460,000 Variable manufacturing cost (₱7.50 per unit) 150,000 135,000 Fixed Manufacturing cost 50,000 54,000 Selling and administrative 45,000 75,000 Questions: 1. What is the net income for 2020 under the Variable Costing Method? 2. What is the net income for 2020 under the Absorption Costing Method? 3. What is the net income for 2021 under the Variable Costing Method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Selling and administrative expenses are 60% fixed and 40% variable
The following data were taken from the records of ZXC INC.
| In units | 2020 | 2021 |
| Inventory, January 1 | 0 | 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 (₱ 20 per unit) | ₱260,000 | ₱460,000 |
| Variable |
150,000 | 135,000 |
| Fixed Manufacturing cost | 50,000 | 54,000 |
| Selling and administrative | 45,000 | 75,000 |
Questions:
1. What is the net income for 2020 under the Variable Costing Method?
2. What is the net income for 2020 under the Absorption Costing Method?
3. What is the net income for 2021 under the Variable Costing Method?
4.What is the net income for 2021 under the Absorption Costing Method?
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