Variable Costing Income Statement The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): Sales. Operating costs: (in millions) $248,260 Cost of products sold $(119,160) Marketing, administrative, and other expenses (79,440) Total operating costs $(198,600) Operating income Assume that the variable amount of each category of operating costs is as follows: $49,660 Cost of products sold Marketing, administrative, and other expenses (in millions) $67,030 32,270 a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions) Line Item Description Amount Amount

Variable Costing Income Statement The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): Sales. Operating costs: (in millions) $248,260 Cost of products sold $(119,160) Marketing, administrative, and other expenses (79,440) Total operating costs $(198,600) Operating income Assume that the variable amount of each category of operating costs is as follows: $49,660 Cost of products sold Marketing, administrative, and other expenses (in millions) $67,030 32,270 a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions) Line Item Description Amount Amount

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 7E: The following data were adapted from a recent income statement of The Procter Gamble Company (PG):...

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The following data were adapted from a recent income statement of The Procter Gamble Company (PG): Assume that the variable amount of each category of operating costs is as follows: a. Based on the data given, prepare a variable costing income statement for Procter Gamble, assuming that the company maintained constant inventory levels during the period. b. If Procter Gamble reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing?
Summarized data for Walrus Co. for its first year of operations are: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
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.
To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
Variable-Costing Income Statement Refer to the data for Osterman Company on the previous page. Required: 1. Calculate the cost of goods sold under variable costing. 2. Prepare an income statement using variable costing. Use the following information for Brief Exercises 3-23 and 3-24: During the most recent year, Osterman Company had the following data:
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units Units produced Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit Total fixed manufacturing costs What is the unit product cost for the year using absorption costing? OA. $117 630 1,400 1,500 530 $50 $42,000 W
June Company's actual data for 201A are given as follows: Units produced Units sold Selling price per unit Direct material costs Direct labor Variable manufacturing overhead Variable selling costs Fixed manufacturing costs Fixed administrative costs 25,000 24,000 P200 30 20 60 20 P600,000 300,000 Required: Prepare an income statement under (1) absorption costing, (2) variable costing, and (3) throughput costing.
Please give me instruction on the following step by step: Variable Costing Income Statement The following data were adapted from a recent income statement of Bluth Company: (in millions) Sales $313,680 Operating costs: Cost of products sold $150,570 Marketing, administrative, and other expenses 100,380 Total operating costs $250,950 Income from operations $62,730 Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold $84,690 Marketing, administrative, and other expenses 40,780 a. Based on the data given, prepare a variable costing income statement for Bluth Company, assuming that the company maintained constant inventory levels during the period. Bluth Company Variable Costing Income Statement (in millions) $ $ $ Fixed costs: $ Income from operations $ b. If Bluth Company reduced its…
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter $ 130 1,500,000 4,500,000 a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 16 19 17 13 500,000 units 500,000 units 600,000 units
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced Number of units sold sales price per unit Direct materials per unit Direct labor per unit variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($319,140 + 2,700 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses Req 2A Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 28 Complete this question by entering your answers in the tabs below. $ Gross Margin Less: Non-Manufacturing Expenses 2,700 1,650 660.00 80.00 110.00 60.00 118.20 Req 3 Net Operating Income 18,150.00 77,000.00 Complete a full absorption costing income statement for…