Variafull Company presented the following data for 2019 and 2020: Cost per unit: Production and Sales...

 

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Variafull Company presented the following data for 2019 and 2020: Cost per unit: Production and Sales (units) Direct materials P13.00 Direct labor 10.00 Variable factory overhead.... 2.00 Selling price per unit P45.00 2020 Production 2020 Sales 2019 Production 2019 Sales ..... 14,000 16,000 17,000 14,000 There was no 2019 inventory, beginning. The expected normal production each year is 15,000 units. Total fixed manufacturing overhead each year are P120,000. Fixed selling and administrative expenses are budgeted at P65,000 yearly while variable selling and administrative expenses are expected to be 10% of sales. Required: a. Prepare a detailed income statements for the years ended December 31, 2020 and 2019 under: 1. Direct Costing method 2. Full Costing method b. Reconcile the differences in net income for 2017 and 2016 for both method Variafull Company presented the following data for 2019 and 2020: Cost per unit: Production and Sales (units) Direct materials P13.00 Direct labor 10.00 Variable factory overhead.... 2.00 Selling price per unit P45.00 2020 Production 2020 Sales 2019 Production 2019 Sales ..... 14,000 16,000 17,000 14,000 There was no 2019 inventory, beginning. The expected normal production each year is 15,000 units. Total fixed manufacturing overhead each year are P120,000. Fixed selling and administrative expenses are budgeted at P65,000 yearly while variable selling and administrative expenses are expected to be 10% of sales. Required: a. Prepare a detailed income statements for the years ended December 31, 2020 and 2019 under: 1. Direct Costing method 2. Full Costing method b. Reconcile the differences in net income for 2017 and 2016 for both method

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a 1 Direct Costing Method Income Statement for the Year Ended December 31 2020 Sales P720000 Cost of ... View the full answer