Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidio's most recent year of operations follows:
Number of units produced.........................................................................2,100
Number of units sold...............................................................................1,300
Sales price per unit..............................................................................$ 710.00
Direct materials per unit...........................................................................60.00
Direct labor per unit................................................................................90.00
Variable manufacturing overhead per unit......................................................40.00
Fixed manufacturing overhead per unit ($249,270 ÷ 2,100 units).........................118.70
Total variable selling expenses ($10 per unit sold).......................................13,000.00
Total fixed general and administrative expenses..........................................82,000.00
Required:
Complete a full absorption costing income statement and a variable costing income statement for Presidio. Assume there was no beginning inventory.
Presidio,Inc.
Full Absorption Costing
Income Statement
Sales..................................................................................?....................?
Less: Cost of Goods Sold.........................................................?....................?
Beginning Inventory...............................................................?....................?
Cost of Goods Manufactured.....................................................?....................?
Cost of Goods Available for Sale................................................?....................?
Ending Inventory...................................................................?....................?
Cost of Goods Sold.................................................................?....................?
Gross Margin........................................................................?....................?
Less: Non-Manufacturing Expeses...............................................?....................?
Fixed General and Administrative Expense....................................?....................?
Variable Selling Expenses.........................................................?....................?
Net Operating Income ..............................................................?....................?
Presidio, Inc.
Variable Costing
Income Statement
Sales..............................................................................?....................?
Less: Variable Cost of Goods Sold..........................................?....................?
Beginning Inventory............................................................?....................?
Cost of Goods Available for Sale.............................................?....................?
Ending Inventory...............................................................?....................?
Variable Cost of Goods Sold..................................................?....................?
Variable Selling Expense.......................................................?....................?
Contribution Margin............................................................?....................?
Less: Fixed Costs................................................................?....................?
Fixed General and Administrative Expense..................................?....................?
Fixed Manufacturing Overhead................................................?....................?
Net Operating Income ............................................................?....................?
Compute the difference in profit between full absorption costing and variable costing. difference in profit = ??