Norte Corporation's functional income statement for the first three periods of operations follows: Sales (P100.00 per...

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Norte Corporation's functional income statement for the first three periods of operations follows: Sales (P100.00 per unit) Cost of Sales Gross Profit Operating Expenses Operating income The company's cost structure follows: Direct Materials Direct Labor Period 1 P Period 2 Period 3 P P 500,000 700,000 300,000 420,000 200,000 280,000 100,000 120,000 100,000 160,000 P 30.00 12.00 8.00 10.00 Fixed Overhead P 60,000 Fixed Selling and Administrative P 50,000 The company consistently produced 6,000 units annually. Variable Overhead Variable Selling and Administrative 600,000 360,000 240,000 110,000 130,000 Required: 1. Construct the company's contribution format income statement for the three periods presented. 2. Reconcile the net income of under both costing method. Norte Corporation's functional income statement for the first three periods of operations follows: Sales (P100.00 per unit) Cost of Sales Gross Profit Operating Expenses Operating income The company's cost structure follows: Direct Materials Direct Labor Period 1 P Period 2 Period 3 P P 500,000 700,000 300,000 420,000 200,000 280,000 100,000 120,000 100,000 160,000 P 30.00 12.00 8.00 10.00 Fixed Overhead P 60,000 Fixed Selling and Administrative P 50,000 The company consistently produced 6,000 units annually. Variable Overhead Variable Selling and Administrative 600,000 360,000 240,000 110,000 130,000 Required: 1. Construct the company's contribution format income statement for the three periods presented. 2. Reconcile the net income of under both costing method.

Answer rating: 100% (QA)

Period 1 Sales P500000 Variable Expenses Direct Materials P3000 per unit 6000 units P180000 Direct Labor P1200 per unit 6000 units P72000 Variable Ove... View the full answer