Alyssa Company produces a single product. Last year, the company had 16,000 units in its beginning inventory. During the year, the company's variable production costs were P6 per unit and its fixed manufacturing overhead costs were P4 per unit. The company's net operating income for the year was P24,000 higher under absorption costing than it was under variable costing. Given these facts, the number of units in the ending inventory must have been: * a. 22,000 units b. 10,000 units c. 6,000 units d. 4,000 units

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: Explanation: Cost per unit = Direct materials + Direct labor + Variable manufacturing overhead +…

Q: Pennell Company gathered the following information for the year ended ecember 31, 2018. During the…

A: Solution:- Calculation of contribution margin per unit as follows under:-

Q: Barbie Company, which has only one product, has provided the following data concerning its most…

A:

Q: Hessell Corporation, which has only one product, has provided the following data concerning its most…

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Q: Pennell Company gathered the following information for the year ended December 31, 2018. During the…

A: Sales: It is an economic activity. Under this, one party sell its goods or services to another…

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: The gross margin is determined by subtracting the expenses from the sales price.

Q: Baughn Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: O company produces a single product. Last year, the company had a net operating income of P92,000…

A: solution : given : net operating income using absorption costing         = P92,000   net operating…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Under absorption costing, Variable selling and administrative expense and Fixed selling and…

Q: At the end of last year, Amelie had 30,000 units in its ending inventory. Amelie's variable…

A: Difference in Units=Difference in Net income Fixed Manufacturing overhead per unit

Q: Last​ year, Adara Company produced 5,000units and sold 3,000 units. The company had no beginning…

A: Definition:   Variable costing: It refers to the method of product costing in which the price of…

Q: A manufacturer reports the following costs to produce 25,000 units in its first year of operations:…

A: We know that under variable costing inventory value includes all variable costs. That is, Value of…

Q: A company produces a single product. Last year, fixed manufacturing overhead was $25,000, variable…

A: Formula: Net income = Total Revenues - Total expenses.

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A: Solution.. Units sold  = Total sales revenue ÷ selling price per unit  = P636,400 ÷ P74 per unit  =…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A:

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A: Variable Costing: Unit Cost = Direct Materials + Direct Labor + Variable Manufacturing OverheadUnit…

Q: During the previous year, Casually Company had the following data: Units in beginning inventory…

A: 1.  Product cost Per Unit under absorption costing, would be calculated as follows :  Particular…

Q: Pierre Corporation manufactures a single product that it sells for $122 per unit. The company had…

A: Introduction: Product costs refer to all expenses incurred by the company in order to generate the…

Q: Levy company produces a single product last year the company net operating income computed by the…

A: As per the variable costing method, only variable cost is measured but under absorption costing both…

Q: Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for…

A: Following are the calculation of ending inventory under variable coting:

Q: During the year, FITA Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing and variable costing are two methods of costing. Under absorption costing, total…

Q: MANO Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Baughn Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing only includes theproduct costs that vary with output. It doesnt include the fixed…

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: Absorption costing: It is a costing method that include all production costs, fixed and variable…

Q: Amanufacturing company that produces a single product has provided the following data related to its…

A: Absorption Costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

Q: The Riego company had a net operating income of P85,500 using variable costing and a net operating…

A: Total fixed manufacturing overhead P1,50,000 Production in units 100000 Fixed manufacturing…

Q: Inc. has provided the following data concerning their operations in the most recent month with…

A: Under variable costing system unit product cost include all the variable manufacturing cost that is…

Q: Maher Corporation, which has only one product, has provided the following data concerning its most…

A: The following data is related to Maher Corporation for the month as per the given information.

Q: Farris Corporation, which has only one product, has provided the following data concerning its most…

A: Net operating income (loss) = 11500

Q: JKL Company produces a single product. At the end of last year, the company had 30,000 units in its…

A: The difference in units is shown below, Difference in Units = Difference in Net incomeFixed…

Q: Calculate net income for the month using variable costing.   a. $173,236   b. $153,781   c.…

A: Units produce  81,450 Units sold 77,820 Selling price per unit:                      $13.80…

Q: Orange Company produces single product. Last year, the company’s net operating income computed by…

A: Inventory can be defined as the goods that a business holds in its storage for the purpose of sale…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: Introduction: The profit a business makes after subtracting the costs of manufacturing and selling…

Q: Mahugh Corporation, which has only one product, has provided the following data concerning its most…

A: Variable Costing is a method of cost allocation in which only variable direct costs are assigned as…

Q: Shazam Company had 16,000 units in its beginning inventory. During the year, the company’s variable…

A: Absorption costing and variable costing are two methods which are used. Under absorption costing,…

Q: Jarvix Company, which has only one product, has provided the following data concerning its most…

A: Absorption costing includes anything that is a direct cost in producing a good in its cost basis.…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: The gross profit is the excess of revenue over the cost of goods sold. It is also the amount…

Q: Davison Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing includes the cost which vary from output to ouput. It does not include the fixed…

Q: The contribution margin per unit was:

A: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Absorption Costing: Absorption Costing is a costing system that is used in valuing inventory. It not…

Q: The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units…

A: Calculation of product cost per unit under variable costing : Particulars  Amount Direct…

Q: Hadley Corporation, which has only one product, has provided the following data concerning its most…

A: Answer - Period Cost Under Variable Costing = Fixed Manufacturing Overheads + All Non-Manufacturing…

Q: unit product cost for the month under variable costing

A: Variable costing is a cost accounting method which uses variable costs only for product costing.

Q: The total contribution margin for the month under variable costing is:

A: Contribution margin can be defined as the difference between the sale price of the goods and the…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Beech Company produces a single product. The company has 55,000 units in its beginning inventory.…

A: Profit under Variable costing is lower if ending inventory is higher than beginning inventory Units…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold…

A: Ending inventory units = Total units produced - units sold = 27,120 units - 21,800 units = 5,320…

Q: Davison Corporation, which has only one product, has provided the following data concerning its most…

A: A period cost is a cost which cannot be capitalized into prepaid expenses, inventory, or fixed…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.