Direction: Show computations During the most recent year, Lonely Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (P300 per unit) Variable costs per unit: Direct Materials Direct labor Variable overhead Fixed Costs Fixed overhead per unit produced Fixed selling and administrative expense Required: 8,000 P 100 P 50 P 25 10,000 P 50 P100,000 Using the Variable costing, compute the product cost per unit. What is the value of ending inventory under Variable costing? • What is the value of ending inventory under Absorption costing?
Direction: Show computations During the most recent year, Lonely Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (P300 per unit) Variable costs per unit: Direct Materials Direct labor Variable overhead Fixed Costs Fixed overhead per unit produced Fixed selling and administrative expense Required: 8,000 P 100 P 50 P 25 10,000 P 50 P100,000 Using the Variable costing, compute the product cost per unit. What is the value of ending inventory under Variable costing? • What is the value of ending inventory under Absorption costing?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 8E: Estimated income statements, using absorption and variable costing Prior to the first month of...
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