PNT Company has been producing and selling pint containers for a number of years. The following information was gathered for 2016. Selling price per unit $15.50 Variable Cost per Unit: Manufacturing Selling & Admin $7.50 $3.00 Fixed Costs Manufacturing $220,000 Selling & Admin $145,000 Required: 1. Prepare an income statement using the contribution approach for both scenarios . Prepare an income statement using the absorption approach for both scenarios Scenario 1
PNT Company has been producing and selling pint containers for a number of years. The following information was gathered for 2016. Selling price per unit $15.50 Variable Cost per Unit: Manufacturing Selling & Admin $7.50 $3.00 Fixed Costs Manufacturing $220,000 Selling & Admin $145,000 Required: 1. Prepare an income statement using the contribution approach for both scenarios . Prepare an income statement using the absorption approach for both scenarios Scenario 1
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 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...
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Prepare income statement using contribution approach and absorption approach.
PNT has produced and sold 120,000 units.
Transcribed Image Text:B
Variable Costing Exercise
2.
PNT Company has been producing and selling pint containers for a number of years.
The following information was gathered for 2016.
3
4
Selling price per unit
$15.50
Variable Cost per Unit:
Manufacturing
Selling & Admin
$7.50
$3.00
Fixed Costs
Manufacturing
$220,000
$145,000
Selling & Admin
Required:
a. Prepare an income statement using the contribution approach for both scenarios
b. Prepare an income statement using the absorption approach for both scenarios
Scenario 1
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