Variable Costing Income Statement The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): Sales. Operating costs: (in millions) $248,260 Cost of products sold $(119,160) Marketing, administrative, and other expenses (79,440) Total operating costs $(198,600) Operating income Assume that the variable amount of each category of operating costs is as follows: $49,660 Cost of products sold Marketing, administrative, and other expenses (in millions) $67,030 32,270 a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions) Line Item Description Amount Amount
Variable Costing Income Statement The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): Sales. Operating costs: (in millions) $248,260 Cost of products sold $(119,160) Marketing, administrative, and other expenses (79,440) Total operating costs $(198,600) Operating income Assume that the variable amount of each category of operating costs is as follows: $49,660 Cost of products sold Marketing, administrative, and other expenses (in millions) $67,030 32,270 a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions) Line Item Description Amount Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Variable Costing Income Statement
The following data were adapted from a recent income statement of The Procter & Gamble Company (PG):
Sales
Operating costs:
(in millions)
$248,260
Cost of products sold
$(119,160)
Marketing, administrative, and other expenses
(79,440)
Total operating costs
$(198,600)
Operating income
Assume that the variable amount of each category of operating costs is as follows:
$49,660
Cost of products sold
Marketing, administrative, and other expenses
(in millions)
$67,030
32,270
a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the
company maintained constant inventory levels during the period.
The Procter & Gamble Company
Variable Costing Income Statement
(assumed)
(in millions)
Line Item Description Amount Amount
Fixed costs:
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