Question: The setup might be wrong.. I need help Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidio's most
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 Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($261,360 2,200 1,350 $ 720.00 65.00 95.00 45.00 2,200 118.80 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses 14,850.00 83,000.00 Required 2. Complete a full absorption costing income statement and a variable costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. $ 972,000 Less: Cost of Goods Sold 437,130 534,870 (14,850) (83,000) Gross Margin Less: Selling Expense General and Administrative E xpense Net Operating Income $ 437,020 Presidio, Inc. Contribution Margin Income Statement Sales revenue $ 972,000 Less: Variable Manufacturing Costs Variable Selling Expenses Contribution margin Fixed Manufacturing Overhead Fixed General and Administrative Expense Net Operating Income 3. Compute the difference in profit between full absorption costing and variable costing Difference in Profit
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