Variafull Company presented the following data for 2019 and 2020: Cost per unit: Production and Sales (units) 2020 Production 2020 Sales Direct materials Direct labor P13.00 10.00 Variable factory overhead.... 2.00 Selling price per unit 2019 Production P45.00 2019 Sales 14,000 16,000 17,000 14,000 There was no 2019 inventory, beginning. The expected normal production each year is 15,000 units. Total fixed manufacturing overhead each year are P120,000. Fixed selling and administrative expenses are budgeted at P65,000 yearly while variable selling and administrative expenses are expected to be 10% of sales. Required: a. Prepare a detailed income statements for the years ended December 31, 2020 and 2019 under: 1. Direct Costing method 2. Full Costing method b. Reconcile the differences in net income for 2017 and 2016 for both method
Variafull Company presented the following data for 2019 and 2020: Cost per unit: Production and Sales (units) 2020 Production 2020 Sales Direct materials Direct labor P13.00 10.00 Variable factory overhead.... 2.00 Selling price per unit 2019 Production P45.00 2019 Sales 14,000 16,000 17,000 14,000 There was no 2019 inventory, beginning. The expected normal production each year is 15,000 units. Total fixed manufacturing overhead each year are P120,000. Fixed selling and administrative expenses are budgeted at P65,000 yearly while variable selling and administrative expenses are expected to be 10% of sales. Required: a. Prepare a detailed income statements for the years ended December 31, 2020 and 2019 under: 1. Direct Costing method 2. Full Costing method b. Reconcile the differences in net income for 2017 and 2016 for both method
Chapter1: Financial Statements And Business Decisions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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pls help answer letter a and b pls thanks
Transcribed Image Text:Variafull Company presented the following data for 2019 and 2020:
Cost per unit:
Production and Sales (units)
Direct materials
P13.00
Direct labor
10.00
Variable factory overhead.... 2.00
Selling price per unit
2020 Production
2020 Sales
2019 Production
P45.00 2019 Sales
..... 14,000
16,000
17,000
14,000
There was no 2019 inventory, beginning. The expected normal production each
year is 15,000 units. Total fixed manufacturing overhead each year are P120,000. Fixed
selling and administrative expenses are budgeted at P65,000 yearly while variable selling
and administrative expenses are expected to be 10% of sales.
Required:
a. Prepare a detailed income statements for the years ended December 31, 2020
and 2019 under: 1. Direct Costing method 2. Full Costing method
b. Reconcile the differences in net income for 2017 and 2016 for both method
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