You were given the absorption costing income statements of AZ Company for 2020 and 2021. 2021...
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You were given the absorption costing income statements of AZ Company for 2020 and 2021. 2021 Sales Cost of Goods Manufactured Finished Goods, beg Total Available Finished Goods, end Cost of goods sold at standard Under (over) applied factory overhead Cost of goods sold (actual) Gross margin Selling expenses Administrative expenses Net Income Your task is to prepare the counterpart variable costing income statements for the same years. To be able to do that, you were provided with the following data: The budget used as basis to prepare the 2020 and 2021 absorption costing income statements contained the following estimates: Variable factory overhead Fixed factory overhead Direct labor cost Direct labor hours Direct Materials Inventory Work in Process Costs Direct labor hours Finished Goods 2020 840,000 1,015,000 559,000 571,100 25,000 18,000 Actual direct materials cost was P285,000 for 2020 and P270,000 for 2021. Actual direct labor cost for 2020 was P128,000 while it was at P140,000 for the year 2021. Actual fixed overhead was P37,400 for 2020 and P33,000 for 2021. Actual variable overhead was equal to the applied overhead for both years. Selling & Administrative expenses are 50% variable & 50% fixed. Actual activity levels for 2020 and 2021 were 20,000 & 23,000 direct labor hours, respectively. Data on inventory are shown below: Inventory Balances 12/31/2019 12/31/2020 12/31/2021 P22,000 P30,000 P10,000 Costs Direct labor hours 584,000 589,100 18,000 14,000 566,000 575,100 7,400 -1,500 573,400 573,600 266,600 441,400 82,000 95,000 70,000 75,000 114,600 271,400 P155,000 37,500 150,000 25,000 P40,000 1,335 $25,000 1,450 P48,000 1,600 $18,000 1,050 P64,000 2,100 P14,000 820 You were given the absorption costing income statements of AZ Company for 2020 and 2021. 2021 Sales Cost of Goods Manufactured Finished Goods, beg Total Available Finished Goods, end Cost of goods sold at standard Under (over) applied factory overhead Cost of goods sold (actual) Gross margin Selling expenses Administrative expenses Net Income Your task is to prepare the counterpart variable costing income statements for the same years. To be able to do that, you were provided with the following data: The budget used as basis to prepare the 2020 and 2021 absorption costing income statements contained the following estimates: Variable factory overhead Fixed factory overhead Direct labor cost Direct labor hours Direct Materials Inventory Work in Process Costs Direct labor hours Finished Goods 2020 840,000 1,015,000 559,000 571,100 25,000 18,000 Actual direct materials cost was P285,000 for 2020 and P270,000 for 2021. Actual direct labor cost for 2020 was P128,000 while it was at P140,000 for the year 2021. Actual fixed overhead was P37,400 for 2020 and P33,000 for 2021. Actual variable overhead was equal to the applied overhead for both years. Selling & Administrative expenses are 50% variable & 50% fixed. Actual activity levels for 2020 and 2021 were 20,000 & 23,000 direct labor hours, respectively. Data on inventory are shown below: Inventory Balances 12/31/2019 12/31/2020 12/31/2021 P22,000 P30,000 P10,000 Costs Direct labor hours 584,000 589,100 18,000 14,000 566,000 575,100 7,400 -1,500 573,400 573,600 266,600 441,400 82,000 95,000 70,000 75,000 114,600 271,400 P155,000 37,500 150,000 25,000 P40,000 1,335 $25,000 1,450 P48,000 1,600 $18,000 1,050 P64,000 2,100 P14,000 820
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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