Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following data were adapted from a recent inco

The following data were adapted from a recent income statement of Procter & Gamble Company: (in...

90.2K

Verified Solution

Question

Accounting

The following data were adapted from a recent income statementof Procter & Gamble Company: (in millions) Sales $83,062Operating costs: Cost of products sold $42,460 Marketing,administrative, and other expenses 25,314 Total operating costs$67,774 Income from operations $15,288 Assume that the variableamount of each category of operating costs is as follows: (inmillions) Cost of products sold $23,778 Marketing, administrative,and other expenses 10,125 a. Based on the data given, prepare avariable costing income statement for Procter & Gamble Company,assuming that the company maintained constant inventory levelsduring the period. Procter and Gamble Company Variable CostingIncome Statement (assumed) (in millions) $ $ $ Fixed costs: $ $ b.If Procter & Gamble reduced its inventories during the period,what impact would that have on the income from operationsdetermined under absorption costing? If Procter & GambleCompany reduced its inventories during the period, then the cost ofproducts sold would fixed costs allocated to the beginninginventories. Thus, the total fixed costs of products sold on theabsorption costing income statement would be , and the income fromoperations would be .

Answer & Explanation Solved by verified expert
3.8 Ratings (724 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Part A: How many coulombs are required to plate a layer of chromium metal 0.24 mm thick...

Finance
1.2K views

2. Ultimate Electric, Inc. has just developed a solar panel capable of generating 200 percent more...

Psychology
1.2K views

What is reasoning by analogy? How are analogies evaluated? Please provide an example.

Basic Math
1.2K views

A pet store keeps track of the purchases ofcustomers over a four-hour period. The storemanager...

Statistics
1.2K views

1969599 page 507 M N O P C ts and Test Page

Calculus
1.2K views

is the knoth which is concave upward or concave d ownward and find the location...

Algebra
1.2K views

Partially because of people from a certain country living longer the number with Alzheimer s...

Algebra
1.2K views

10 12 ERROR ANALYSIS correct answer in each case a x x x8 6w5 2v...

Accounting
1.2K views

Accounting
1.2K views

how can long trrm assets that are fully deprecated in value but may still have...

Accounting
1.2K views

Fresh n' Fit Cuisine purchased land and a building for $320,000 so that it could...

Accounting
1.2K views

Paul bought a computer (5 year property) for $15,000 for business use on March 18,...