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Last Na Ni
Last Na Ni
Last Na Ni
(a) Prepare operating statements for each of the periods , based on marginal costing
principles
2018
Sales (P25 x 90,000) 2,250,000
Less: Variable Cost:
Manufacturing
Direct Materials (P7.50 x 90,000) (675,000)
Direct Labor (P3.45 x 90,000) (310,500)
Manufacturing overhead (P5.80 x 90,000) (522,000)
Non-manufacturing (P3.90 x 90,000) (351,000)
Contribution Margin 391,500
Less: Fixed Cost (P225,000 + P210,100) (435,100)
Net Loss (43,600)
2019
Sales (P25 x 75,000) 1,875,000
Less: Variable Cost:
Manufacturing
Direct Materials (P7.50 x 75,000) (562,500)
Direct Labor (P3.45 x 75,000) (258,750)
Manufacturing overhead (P5.80 x 75,000) (435,000)
Non-manufacturing (P3.90 x 75,000) (292,500)
Contribution Margin 326,250
Less: Fixed Cost (P225,000 + P210,100) (435,100)
Net Loss (108,850)
2020
Sales (P25 x 110,000) 2,750,000
Less: Variable Cost:
Manufacturing
Direct Materials (P7.50 x 110,000) (825,000)
Direct Labor (P3.45 x 110,000) (379,500)
Manufacturing overhead (P5.80 x 110,000) (638,000)
Non-manufacturing (P3.90 x 110,000) (429,000)
Contribution Margin 478,500
Less: Fixed Cost (P225,000 + P210,100) (435,100)
Net Income 43,400
2021
Sales (P25 x 85,000) 2,125,000
Less: Variable Cost:
Manufacturing
Direct Materials (P7.50 x 85,000) (637,500)
Direct Labor (P3.45 x 85,000) (293,250)
Manufacturing overhead (P5.80 x 85,000) (493,000)
Non-manufacturing (P3.90 x 85,000) (331,500)
Contribution Margin 369,750
Less: Fixed Cost (P225,000 + P210,100) (435,100)
Net Loss (65,350)
(b) Prepare operating statements for each of the periods , based on absorption
costing principles
2018
Variable Manufacturing Costs per unit (7.50 + 3.45 + P16.75
5.80)
Add: Fixed Manufacturing Costs allocated per unit P2.50
(P225,000/90,000 units)
Manufacturing cost per unit P19.25
2019
Variable Manufacturing Costs per unit (7.50 + 3.45 + P16.75
5.80)
Add: Fixed Manufacturing Costs allocated per unit P2.50
(P225,000/90,000 units)
Manufacturing cost per unit P19.25
2020
Variable Manufacturing Costs per unit (7.50 + 3.45 + P16.75
5.80)
Add: Fixed Manufacturing Costs allocated per unit P2.50
(P225,000/90,000 units)
Manufacturing cost per unit P19.25
2021
Variable Manufacturing Costs per unit (7.50 + 3.45 + P16.75
5.80)
Add: Fixed Manufacturing Costs allocated per unit P2.50
(P225,000/90,000 units)
Manufacturing cost per unit P19.25
2019
Net Loss, Absorption Costing (96,350)
Add: Fixed Overhead in Beg. Inventory 0
Total (96,350)
Less: Fixed Overhead in End. Inventory (P2.5 x (12,500)
[80,000 – 75,000])
Net Loss, Absorption Costing (108,850)
2020
Net Income, Absorption Costing 43,400
Add: Fixed Overhead in Beg. Inventory 12,500
Total 55,900
Less: Fixed Overhead in End. Inventory (12,500)
Net Income, Absorption Costing 43,400
2021
Net Loss, Absorption Costing (40,350)
Add: Fixed Overhead in Beg. Inventory 12,500
Total (27,850)
Less: Fixed Overhead in End. Inventory (P2.5 x (37,500)
[95,000 – 85,000 + 5,000*extra from 2020 -FIFO)
Net Loss, Absorption Costing (65,350)