Prepare two annual income statements (a. Absorption Costing income statement and b. Variable costing income statement) using
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Question:
Prepare two annual income statements (a. Absorption Costing income statement and
b. Variable costing income statement) using the following transactions:
a. Units produced and sold 1,000 units @ 6 pesos per unit cost of production and 50
pesos per unit selling price (monthly basis)
b. Raw materials = 2 pesos per unit
c. Direct labor = 2 pesos per unit
d. Fixed factory overhead = 10,000 per month
e. Other variable costs = 2 pesos per unit
f. Administrative expense = 10,000 per month
g. Accounts receivables = 5,000 per month
Expert Answer:
Sure lets start with the Absorption Costing income statement Absorption Costing Income Statement Rev... View the full answer
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