The president of Toblerone, Inc. has been reviewing the income statements of the two most recent...

 

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The president of Toblerone, Inc. has been reviewing the income statements of the two most recent months. She is puzzled because sales rose and profits fell in March, and she asks you, the controller, to explain. Sales (P30 per case) Standard cost of sales Standard gross profit Volume variance Selling and administrative expenses Income February March P 540,000 P 660,000 330,000 270,000 P 270.000 P330.000 40.000 (50,000) (150.000) (150.000) P160.000 P130,000 ======== The standard fixed cost per case is P10, based on normal capacity of 20.000 cases per month Requirements: a. Determine the production volume for each month. b. Prepare the March income statement using variable costing. == The president of Toblerone, Inc. has been reviewing the income statements of the two most recent months. She is puzzled because sales rose and profits fell in March, and she asks you, the controller, to explain. Sales (P30 per case) Standard cost of sales Standard gross profit Volume variance Selling and administrative expenses Income February March P 540,000 P 660,000 330,000 270,000 P 270.000 P330.000 40.000 (50,000) (150.000) (150.000) P160.000 P130,000 ======== The standard fixed cost per case is P10, based on normal capacity of 20.000 cases per month Requirements: a. Determine the production volume for each month. b. Prepare the March income statement using variable costing. ==

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