Perez Manufacturing Company established the following standard price and cost da

Question

Perez Manufacturing Company established the following standard price and cost data.

Perez planned to produce and sell 2,700 units. Actual production and sales amounted to 2,800 units.

Required

Prepare the pro forma income statement in contribution format that would appear in a master budget.

Prepare the pro forma income statement in contribution format that would appear in a flexible budget.

Sales price $ 8.60 per unit Variable manufacturing cost $ 3.60 per unit Fixed manufacturing cost $ 2,700 total Fixed selling and administrative cost $ 700 total PEREZ MANUFACTURING COMPANY Pro Forma Income Statement Flexible Budget 2,800 Units

Explanation / Answer

(2700 X3.60)

PEREZ MANUFACTURING COMPANY Proforma Income Statement Master Budget 2700 Units Calculation Sales              23,220.00 (2700 X8.60) Less: Variable Manufacturing cost               -9,720.00

(2700 X3.60)

Contribution Margin              13,500.00 Less : Fixed Costs Fixed Manuafactuing cost                2,700.00 Fixed Selling and admimistrative cost 700.00 Total Fixed costs                3,400.00 Net income              10,100.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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