Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finished its first year of operations. The following data relates to this first year: Number of gallons produced Number of gallons sold Sales price Unit product cost under variable costing Total contribution margin Total fixed manufacturing overhead cost Total fixed selling and administrative expense REQUIREMENT: Using the absorption costing method, prepare Succulent Juice Company's income statement for the year. 75,000 70,000 P3.00 per gallon P1.45 per gallon P84,000 P63,000 P10,500

Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finished its first year of operations. The following data relates to this first year: Number of gallons produced Number of gallons sold Sales price Unit product cost under variable costing Total contribution margin Total fixed manufacturing overhead cost Total fixed selling and administrative expense REQUIREMENT: Using the absorption costing method, prepare Succulent Juice Company's income statement for the year. 75,000 70,000 P3.00 per gallon P1.45 per gallon P84,000 P63,000 P10,500

Name: Absorption Costing Income Statement (Conversion from Variable Net Inc
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Description: Absorption Costing Income Statement (Conversion from Variable Net Income)4.LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finishedits first year of operations. The following data relates to this first year:Nu

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Problem 8-38 Variable Costing and Absorption Costing Income Statements; Reconciling Reported Operating Income (LO 8-2, 8-3, 8-4) Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $30. The variable costs of production for one case of cans are as follows: Direct material $ 7.00 Direct labor 2.00 6.50 Variable manufacturing overhead Total variable manufacturing cost per case $15.50 Variable selling and administrative costs amount to $0.90 per case. Budgeted fixed manufacturing overhead is $540,000 per year, and fixed selling and administrative cost is $45,500 per year. The following data pertain to the company's first three years of operation. Year 1 Year 2 Year 3 Planned production (in units) Finished-goods inventory (in units), January 1 Actual production (in units) Sales (in units) Finished-goods inventory (in units), December 31 90,000 90,000 90,000 28,000 90,000 90,000 90,000 90,000 62,000 28,000 104,000 14,000 Actual costs…
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
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