De lasangan

LP3

JULY AUGUST SEPTEMBER 1.) Contribution margin income

Sales (@P21,750,000 1,875,000 2,000,000 JULY
Less: Cost of Goods Sold Sales 1,750,000
Beginning 80,000 320,000 400,000 Less: Varia 765,000
Cost applied to production: Less: Selli 420000
Variable m 765,000 720,000 540,000 Contributi 565,000
Fixed Manu 595,000 560,000 420,000 Less: Fixed 595,000
Cost of Go 1,360,000 1,280,000 960,000 Less: Over -35,000
Less: Selli 200,000
Goods avail1,440,000 1,600,000 1,360,000 Income/Lo -265,000
Less endin 320,000 400,000 80,000
Cost of Go 1,120,000 1,200,000 1,280,000 AUGUST
Underapplie -35,000 0 140,000 Sales 1,875,000
Adjusted co1,085,000 1,200,000 1,420,000 Less: Varia 720,000
Gross Marg 665,000 675,000 580,000 Less: Selli 450000
Less sellin 620,000 650,000 680,000 Contributi 705,000
Net incomeP 45,0 P 25,0 P (100,000) Less: Fixed 560,000
Less: Over 0
JULY AUGUST SEPTEMBER Less: Selli 200,000
Production 85,000 80,000 60,000 Income/Lo -55,000
Sales in uni 70,000 75,000 80,000
SEPTEMBER
Selling and 6 Sales 2,000,000
Less: Varia 540,000
Less: Selli 480000
Contributi 980,000
Less: Fixed 420,000
Add: Under 140,000
Less: Selli 200,000
Income/Lo 500,000

3.) JIT Inventory Methods

a.) How many units to produce in september under JIT?
Using JIT Average inventory method
Average In 80000
b.) Income Statement
Sales 2,000,000 Variable M 9
Less: Fixed Manu 7
Opening st 80,000 Manufactur 16
Production Cost:
Variable Co 540,000 Sales 2,000,000
Fixed Cost 420,000 Less: Cost 1280000
Goods available for sa1,040,000 Volume Var 415,000
Closing stock of finis 0 Gross Profi 305,000
Cost of Goods sold 1,040,000 1,040,000 Operating Expenses
Gross Profit 960,000 Less: Selli 680,000
Less Operating Expenses Net Income -375,000
Selling and administrative Expen 680,000
Net Income 280,000

C.) Differences of October - December absorbtion and variable costing in their income statement
Yes, there will be since the very nature of both cost methods are different. We are expecting that variable cost will
2.) Reconcile Variable Costing and Absorption Costing
Variable Costing Absorption Costing
JULY JULY
Sales 1,750,000 Variable M 9
Less: Varia 765,000 Fixed Manu 7
Less: Selli 420000 Manufactur 16
Contributi 565,000
Less: Fixed 595,000 Sales 1,750,000
Less: Over -35,000 Less: Cost 1120000
Less: Selli 200,000 Gross Profi 630,000
Income/Lo -265,000 Operating Expenses
Less: Selli 620,000
Net Income 10,000

AUGUST AUGUST
Sales 1,875,000 Variable M 9
Less: Varia 720,000 Fixed Manu 7
Less: Selli 450000 Manufactur 16
Contributi 705,000
Less: Fixed 560,000 Sales 1,875,000
Less: Over 0 Less: Cost 1200000
Less: Selli 200,000 Volume Var 310,000
Income/Lo -55,000 Gross Profi 365,000
Operating Expenses
Less: Selli 650,000
Net Income -285,000

SEPTEMBER SEPTEMBER
Sales 2,000,000 Variable M 9
Less: Varia 540,000 Fixed Manu 7
Less: Selli 480000 Manufactur 16
Contributi 980,000
Less: Fixed 420,000 Sales 2,000,000
Add: Under 140,000 Less: Cost 1280000
Less: Selli 200,000 Volume Var 415,000
Income/Lo 500,000 Gross Profi 305,000
Operating Expenses
Less: Selli 680,000
Net Income -375,000
e statement
pecting that variable cost will have less cost than absorption