The following data were taken from the records of C5 Drinks Company for the yearsending Year I and Year 2Year 1Year 2In units00Inventory, beginningProductionAvailable for sale20,00020,00013,0007,000P260,0007,00018,00025,00023,0002,000P460,000Units soldInventory endingSales (P20 per unit)egtarb won sEVariable Manufacturing cost (P7.50 per unit)Fixed Manufacturing costsSelling and administrative (60% fixed, 40% variable) 45,000150,00050,000135,00054,00075,000aninelInstructions:1. Determine the net income under absorption costing for Year I and Year 2.2. Determine the net income under variable costing for Year1 and Year 2.3. Determine the cause of the difference in the two net incomes in Year 1 and Year 2.sV

Name: The following data were taken from the records of C5 Drinks Company f
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Description: The following data were taken from the records of C5 Drinks Company for the yearsending Year I and Year 2Year 1Year 2In units00Inventory, beginningProductionAvailable for sale20,00020,00013,0007,000P260,0007,00018,00025,00023,0002,000P460,000Units s

The income statement can be prepared using various methods as absorption costing and variable…

Business

Accounting

The following data were taken from the records of C5 Drinks Company for the years ending Year I and Year 2 In units Year 1 Year 2 Inventory, beginning Production Available for sale Units sold 20,000 20,000 13,000 7,000 P260,000 7,000 18,000 25,000 23,000 2,000 P460,000 Inventory ending Sales (P20 per unit) Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing costs 150,000 50,000 135,000 54.000

The following data were taken from the records of C5 Drinks Company for the years ending Year I and Year 2 In units Year 1 Year 2 Inventory, beginning Production Available for sale Units sold 20,000 20,000 13,000 7,000 P260,000 7,000 18,000 25,000 23,000 2,000 P460,000 Inventory ending Sales (P20 per unit) Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing costs 150,000 50,000 135,000 54.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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