What is the net income for 2019 under Variable Costing
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Question
What is the net income for 2019 under Variable Costing
![Note: Selling and administrative expenses are 60% fixed and 40% variable
The following data were taken from the records of XYZ Company
In Units
2019
2020
Inventory, Jan. 1
7,000
Production
20,000
20,000
18,000
Available for sale
25,000
13,000
7,000
Units sold
23,000
Inventory, Dec. 31
2,000
Sales (20 per unit)
Variable manufacturing cost (7.50 per unit)
Fixed manufacturing cost
P260,000
150,000
460,000
135,000
50,000
54,000
Selling and administrative
45,000
75,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd3b3eeb-f094-49ef-a11f-5fa1dd987f01%2Fda1e73c9-9778-4223-ac57-51327dd0fa57%2Fhgvmfcn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Note: Selling and administrative expenses are 60% fixed and 40% variable
The following data were taken from the records of XYZ Company
In Units
2019
2020
Inventory, Jan. 1
7,000
Production
20,000
20,000
18,000
Available for sale
25,000
13,000
7,000
Units sold
23,000
Inventory, Dec. 31
2,000
Sales (20 per unit)
Variable manufacturing cost (7.50 per unit)
Fixed manufacturing cost
P260,000
150,000
460,000
135,000
50,000
54,000
Selling and administrative
45,000
75,000
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