Units produced 25,000

Units sold 24,000

Selling price per unit 200
Direct material costs 30
Direct labor 20
Variable manufacturing overhead 60
Variable selling cost 8
Fixed manufacturing costs 600,000
Fixed administrative costs 300,000

I. Multiple Choice
1. D
2. A
3. A
4. D
5. B
 June Company's
Income Statement (Absorption Costing)
201A
Sales ₱4,800,000
Less: Cost of Goods Sold 2,016,000
Gross Profit ₱2,784,000
Less: Selling and Administrative Expenses
Variable Selling ₱192,000
Fixed administrative 300,000 492,000
Net Income ₱2,292,000

June Company's
Income Statement (Variable Costing)
201A
Sales ₱4,800,000
Less: Variable Costs
Cost of Goods Sold ₱1,440,000
Selling Costs 192,000 1,632,000
Contribution Margin 3,168,000
Less: Fixed Costs
Manufacturing Costs 600,000
Administrative Costs 300,000 900,000
Net Income ₱2,268,000

June Company's
Income Statement (Throughput Costing)
201A
Sales ₱4,800,000
Less: Direct Materials 720,000
Throughput Margin 4,080,000
Less:
Variable manufacturing costs ₱750,000
Variable Selling Expenses 192,000
Fixed Manufacturing Costs 600,000
Fixed Administrative Expenses 300,000 ₱1,842,000
Net Income ₱2,238,000
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