Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,100 Number of units sold 1,350 Sales price per
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,100 Number of units sold 1,350 Sales price per unit $ 600.00 Direct materials per unit 50.00 Direct labor per unit 80.00 Variable manufacturing overhead per unit 30.00 Fixed manufacturing overhead per unit ($246,960 117.60 + 2,100 units) Total variable selling expenses ($11 per unit sold) 14,850.00 Total fixed general and administrative expenses 71,800.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory 3. Compute the difference in profit between full absorption costing and variable costing. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Reg 3 Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Full Absorption Income Statement Gross Margin Less: Non-Manufacturing Expenses Net Operating Income Reg 2A Req 2B Reg 3 Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Variable Costing Income Statement Contribution Margin Less: Fixed Costs Net Operating Income Reg 2A Req 2B Reg 3 Compute the difference in profit between full absorption costing and variable costing. Difference in Profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started