Prepare an income statement for external users

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Problem - Bohanan manufactures a stuffed bear called Smokee. Last year 100,000 bears were made and sold for P30 each. The actual unit cost for the stuffed bear follows:

Direct materials P 4.00

Direct labor 6.00

Variable overhead 5.00

Fixed overhead 8.00

Total unit cost P23.00

The only selling expenses were a commission of P2 per unit sold and advertising totaling P50,000. Administrative expenses, all fixed, equaled P150,000. There were no beginning or ending finished goods inventories.

Required - Prepare an income statement for external users?

Reference no: EM132633910

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