Question
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced Number of units sold Sales price per unit
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit 3,000 1,800 690.00 50.00 80.00 30.00 118.50 Total variable selling expenses ($14 per unit sold) 25,200.00 80,000.00 Fixed manufacturing overhead per unit ($355,500 3,000 units) Total fixed general and administrative expenses 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.
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