ce Corporation has the following information in its first year of operations in 201A: Units produced Units sold 20,000 19,000 Selling price per unit P150 Direct material costs 20 Direct labor Variable manufacturing overhead Variable selling costs 15 50 20 Fixed manufacturing costs Fixed administrative costs P460,000 280,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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Ace Corporation
Ace Corporation has the following information in its first year of operations in 201A:
Units produced
Units sold
20,000
19,000
Selling price per unit
Direct material costs
Direct labor
Variable manufacturing overhead
Variable selling costs
P150
20
15
50
20
Fixed manufacturing costs
Fixed administrative costs
P460,000
280,000
Required:
Prepare an income statement under (1) absorption costing, (2) variable costing, and (3) throughput costing.
Transcribed Image Text:Ace Corporation Ace Corporation has the following information in its first year of operations in 201A: Units produced Units sold 20,000 19,000 Selling price per unit Direct material costs Direct labor Variable manufacturing overhead Variable selling costs P150 20 15 50 20 Fixed manufacturing costs Fixed administrative costs P460,000 280,000 Required: Prepare an income statement under (1) absorption costing, (2) variable costing, and (3) throughput costing.
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