dele Watches has the following cost information for 2019: Direct materials P6.00 per unit Direct labor P4.00 per unit Variable manufacturing overhead P2.00 per unit Variable selling and administrative cost P1.00 per unit Fixed manufacturing overhead P80,000 Fixed selling and administrative cost P25,000 Selling Price P23.00 Units produce 25,000 units Units sold 23,000 units Provide the following: 1. Income statement using variable costing. 2. income statement using Absortption costing.
dele Watches has the following cost information for 2019: Direct materials P6.00 per unit Direct labor P4.00 per unit Variable manufacturing overhead P2.00 per unit Variable selling and administrative cost P1.00 per unit Fixed manufacturing overhead P80,000 Fixed selling and administrative cost P25,000 Selling Price P23.00 Units produce 25,000 units Units sold 23,000 units Provide the following: 1. Income statement using variable costing. 2. income statement using Absortption costing.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...
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Adele Watches has the following cost information for 2019:
Direct materials P6.00 per unit
Direct labor P4.00 per unit
Variable manufacturing
Variable selling and administrative cost P1.00 per unit
Fixed manufacturing overhead P80,000
Fixed selling and administrative cost P25,000
Selling Price P23.00
Units produce 25,000 units
Units sold 23,000 units
Provide the following:
1. Income statement using variable costing.
2. income statement using Absortption costing.
3. For internal decision making, which income statement would be more useful? Why?
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