Sheena Marie C.

Lopez
BSAIS 3A

June Company’s actual data for 201A are given as follows:

Units produced 25,000

Units sold 24,000
Selling price per unit P200
Direct material costs 30
Direct labor 20
Variable manufacturing overhead 60
Variable selling costs 20
Fixed manufacturing costs P600,000
Fixed administrative costs 300,000

Prepare an income statement under (1) absorption costing, (2) variable costing, and (3) throughput
costing.

June Company
Income Statement (Absorption Costing)
December 31, 201A

Sales (24,000 x P200) P4,800,000

Less: Cost of Goods Sold (24,000 x P134) 2,016,000
Gross Profit 1,584,000
Less: Selling and Administrative Expenses
Variable Selling (24,000 x P20) 480,000
Fixed Administrative 300,000 780,000
Net Income P804,000

*The cost of goods sold by P134 per unit is computed as the sum of variable and fixed
manufacturing costs per unit and direct material cost and labor {P30+20+60+ (600,000/25,000)

June Company
Income Statement (Variable Costing)
December 31, 201A

Sales (24,000 x P200) P4,800,000

Less: Variable Cost
Cost of Goods Sold (24,000 x P110) 2,640,000
Selling Costs (24,000 x 20) 480,000 3,120,000
Contribution Margin 1,680,000
Less: Fixed Costs
Manufacturing Costs 600,000
Administrative Costs 300,000 900,000
Net Income P780,000
 June Company
Income Statement (Throughput Costing)
December 31, 201A

Sales (24,000 x 200) P4,800,000

Less: Direct Materials (24,000 x 30) 720,000
Throughput Margin 4,080,000
Less:
Variable Manufacturing Costs (25,000 x 30) 750,000
Variable Selling Expenses (24,000 x 20) 480,000
Fixed Manufacturing Costs 600,000
Fixed Administrative Expenses 300,000 2,130,000
Net Income P1,950,000