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In: Accounting

Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced...

Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,600 Number of units sold 1,600 Sales price per unit $ 650.00 Direct materials per unit 75.00 Direct labor per unit 105.00 Variable manufacturing overhead per unit 55.00 Fixed manufacturing overhead per unit ($307,060 ÷ 2,600 units) 118.10 Total variable selling expenses ($10 per unit sold) 16,000.00 Total fixed general and administrative expenses 76,000.00 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.

Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
Presidio, Inc.
Full Absorption Income Statement
Gross Margin
Less: Non-Manufacturing Expenses
Net Operating Income

Complete a variable costing income statement for Presidio. Assume there was no beginning inventory.
Presidio, Inc.
Variable Costing Income Statement
Contribution Margin
Less: Fixed Costs
Net Operating Income

Compute the difference in profit between full absorption costing and variable costing.
Difference in Profit

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ekkarill92 answered 1 year ago
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