Safari File Edit View History Bookmarks Window Help 27%)D * :)) Sat Jun 16 9:24

Question

Safari File Edit View History Bookmarks Window Help 27%)D * :)) Sat Jun 16 9:24 PM Alex a E ezto.mheducation.com Home -alamo.edu MicGraw-Hill Connect Chapter 5 Exercises 12.50 points Consider the following information for Presidio Inc. 's most recent year of operations. Additional information for Presidio's most recent year of operations follows: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($235,000 2,000 1,300 S 650.00 60.00 90.00 40.00 2,000 117.50 units) Total variable selling expenses ($10 per unit sold) Total fixed general and administrative expenses 13,000.00 70,000.00 Required: 2. Complete a full absorption costing income statement and a variable costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Full Absorption Income Statement Less: Cost of Goods Sold Gross Margin Net Operating Income 0 popcorntime ap

Explanation / Answer

Income Statement-Absorption Sales revennue (1300 units @650) 845000 Lless: Cost of Goods sold (1300 units @ 307.50) 399750 Gross Margin 445250 Less: Selling and admin expense variable selling expense (1300*10) 13000 Fixed generala and admin expense 70000 Net income 362250 Contribution margin Income Statement Sales revenue (1300 units @650) 845000 Less: Variable cost Material (1300*60) 78000 Labour (1300*90) 117000 Vvariable manufacturing Oh (1300*40) 52000 Variable selling expense (1300*10) 13000 Contribution margin   585000 Less: Fixed cost Fixed manufacturing OH 235000 Fixed general and admin Oh 70000 Net income 280000 Difference in Profit n Absorption and Variable costing is $82250

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.