Variable Costing Exercise 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 Selling & Admin $220,000 $145,000 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
Variable Costing Exercise 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 Selling & Admin $220,000 $145,000 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
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 an income statement using contribution approach and absorption approach.
PNT has produced 120,000 units and sold 135,000 units.
Transcribed Image Text:1
Variable Costing Exercise
PNT Company has been producing and selling pint containers for a number of
The following information was gathered for 2016.
years.
Selling price per unit
$15.50
Variable Cost per Unit:
Manufacturing
Selling & Admin
6.
$7.50
10
$3.00
11
Fixed Costs
Manufacturing
12
13
S220,000
Selling & Admin
$145,000
14
15
16 Required:
17
18
a. Prepare an income statement using the contribution approach for both scenarios
b. Prepare an income statement using the absorption approach for both scenarios
1
Scenario 1
345
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