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    Barba, Ryneth Claire T 1 A) : Required

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    Claire Barba
    The document contains income statements for Max Company using absorption costing and variable costing. Under absorption costing, the company reports a net income of ₱50,000 based on sales of ₱800,000 and a cost of goods sold of ₱560,000 which includes fixed overhead. Under variable costing, the company reports a higher net income of ₱18,000 as fixed costs are reported separately rather than in cost of goods sold. It also includes calculations to determine unit product costs under absorption and variable costing.

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    Barba, Ryneth Claire T 1 A) : Required

    Uploaded by

    Claire Barba
    24 views7 pages
    The document contains income statements for Max Company using absorption costing and variable costing. Under absorption costing, the company reports a net income of ₱50,000 based on sales of ₱800,000 and a cost of goods sold of ₱560,000 which includes fixed overhead. Under variable costing, the company reports a higher net income of ₱18,000 as fixed costs are reported separately rather than in cost of goods sold. It also includes calculations to determine unit product costs under absorption and variable costing.

    Original Title

    Variable_Costing_Exercises

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    The document contains income statements for Max Company using absorption costing and variable costing. Under absorption costing, the company reports a net income of ₱50,000 based on sales of ₱800,000 and a cost of goods sold of ₱560,000 which includes fixed overhead. Under variable costing, the company reports a higher net income of ₱18,000 as fixed costs are reported separately rather than in cost of goods sold. It also includes calculations to determine unit product costs under absorption and variable costing.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    24 views7 pages

    Barba, Ryneth Claire T 1 A) : Required

    Uploaded by

    Claire Barba
    The document contains income statements for Max Company using absorption costing and variable costing. Under absorption costing, the company reports a net income of ₱50,000 based on sales of ₱800,000 and a cost of goods sold of ₱560,000 which includes fixed overhead. Under variable costing, the company reports a higher net income of ₱18,000 as fixed costs are reported separately rather than in cost of goods sold. It also includes calculations to determine unit product costs under absorption and variable costing.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 7

    BARBA, RYNETH CLAIRE T

    REQUIRED:
    1 a)

    b)

    2a

    b
    Direct materials ₱ 18.00
    Direct Labor ₱ 7.00
    Variable manufacturing overhead ₱ 2.00
    Total variable manufacturing costs ₱ 27.00
    Fixed manufacturing overhead (P 160,000 / 20,000 UNITS) ₱ 8.00
    Absorption costing unit product cost ₱ 35.00

    Max Company
    Income Statement
    For the year 20xx
    Absorption Costing

    Sales
    Less: Cost of Good Sold
    Inventory, beginning ₱ -
    Cost of goods manufactured ₱ 700,000.00
    Total goods available for sale ₱ 700,000.00
    Less: Ending inventory ₱ 140,000.00
    Gross profit
    Less: Operating expenses
    Selling and administrative expenses
    Fixed ₱ 110,000.00
    Variable ₱ 80,000.00
    Net Income

    Direct materials ₱ 18.00


    Direct Labor ₱ 7.00
    Variable manufacturing overhead ₱ 2.00
    Total variable manufacturing costs ₱ 27.00

    Max Company
    Income Statement
    For the year 20xx
    Variable Costing

    Sales
    Less: Variable cost of Sales
    Variable cost of Good sold ₱ 432,000.00
    Variable Selling and Administrative Expenses ₱ 80,000.00
    Contribution Margin
    Less: Fixed Cost
    Manufacturing ₱ 160,000.00
    Selling and Administrative Expenses ₱ 110,000.00
    Net Income (loss)
    ₱ 800,000.00

    ₱ 560,000.00
    ₱ 240,000.00

    ₱ 190,000.00
    ₱ 50,000.00

    ₱ 800,000.00

    ₱ 512,000.00
    ₱ 288,000.00
    ₱ 270,000.00
    ₱ 18,000.00
    Sales (16,000 units * P 50 per unit) ₱ 800,000.00
    Cost of good sold (16,000 units * P35 per unit) ₱ 560,000.00
    Selling and Administrative Expenses [(16,000 units * P 2 per unit) + P 110,000] ₱ 142,000.00
    Cost of goods manufactured ( 16,000 * 38) ₱ 700,000.00

    Sales (16,000 units * P 50 per unit) ₱ 800,000.00


    Cost of good sold (16,000 units * P27 per unit) ₱ 432,000.00
    Selling and Administrative Expenses (16,000 units * P 2 per unit) ₱ 32,000.00
    REQUIRED:
    1 Direct materials ₱ 1,200.00
    Direct Labor ₱ 1,400.00
    Variable manufacturing overhead ₱ 500.00
    Total variable manufacturing costs ₱ 3,100.00
    Fixed manufacturing overhead (P 600,000/ 10,000 UNITS) ₱ 600.00
    Absorption costing unit product cost ₱ 3,700.00

    2 Direct materials ₱ 1,200.00


    Direct Labor ₱ 1,400.00
    Variable manufacturing overhead ₱ 500.00
    Total variable manufacturing costs ₱ 3,100.00

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