During the year, ABS Corporation produced 500 units of new products. The new product’s variable and fixed manufacturing ocst per unit were P5 and P 3, respectively. At the end of the period, the new product’s inventory consisted of 80 units. What would be the change in the peso amount of inventory at the end of the period if absorption costing were used instead of variable costing?

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

A: Absorption costing: It is one of the managerial accounting methods under which all the costs that…

Q: During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On…

A:

Q: Mackenzie, Inc. has collected the following data.​ (There are no beginning​ inventories.)   Units…

A: Ending inventory units=Units produced-Units sold=600-550=50 units

Q: Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product…

A: Inventory forms a part of current assets of the entity and is included in the asset section of…

Q: The following data pertain to last year's operations at abc Corporation, a company that produces a…

A: Absorption costing: This is the method of assessing the product cost by assigning all the costs…

Q: lavs Inc. collected the following production data for the past month: (See image) If the high-low…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

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: 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: The following information is available for SAN JOSE CORP.'s new product line: Sale price per unit…

A: The direct costing is similar to variable costing where only direct variable costs are added to…

Q: GHI Company produces a single product. During the year just ended, the company's net operating…

A: Variable product cost=Total variable cost-Variable selling cost=Php 9-Php 3=Php 6

Q: Under variable costing, the value of the inventory is:

A: Option D is correct.

Q: The following data pertain to last year's operations at abc Corporation, a company that produces a…

A: Calculation Of Variable Costing Net Operating Income ::::: Particulars.                Amount $...…

Q: Alyssa Company produces a single product. Last year, the company had 16,000 units in its beginning…

A: Total increase in inventory = Higher profit as per absorption costing / fixed manufacturing overhead…

Q: Production in units per month 3,000 9,000 16,000 P86,490 35,000 Cost X P23,700 P52,680 P178,260 Cost…

A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…

Q: Under Absorption Costing, Net sales of Pacquiao Incorporated totaled P500,000 and the gross profit…

A: Gross profit under absorption costing = P500,000 x 35% = P175,000   Fixed manufacturing overhead…

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: Lavender Company’s income under absorption costing was P 3,600 lower than its income under variable…

A: Variable production cost=Total variable cost-Variable selling cost=P 9 - P 1=P 8

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

A: Total variable cost = Direct materials + Direct labor + Variable manufacturing overhead  + Variable…

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: A review of Olaf Corporation's accounting records found that at a volume of 90,000 units, the…

A: The question is based on the concept of Cost Accounting.

Q: If fixed costs are $234,000, the unit selling price is $123, and the unit variable costs are $80,…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: At the end of Nabirukan Co.’s first year of operations, 1,000 units of inventory remained on hand.…

A: Answer:   Option A.

Q: Lover Company produced and sold 70,000 backpacks during the year just ended at an average price of…

A: Cost volume profit analysis is conducted to analyze the impact on profit, at different level of…

Q: Prepare an income statement for Jomar Box Company under the following methods: a.Absorption Costing…

A: The major difference between marginal costing and absorption costing is treatment for closing stock.…

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: ​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced…

A: Answer:   “Option c”.

Q: MNO Products, Inc. planned and actually manufactured 200,000 units of its single product in 2020,…

A: Variable cost is  that change as the amount of the great or administration that a business produces…

Q: For 2020, Roberts Ltd., had sales of 150,000 units and production of 210,000 units. Other…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at…

A: A variable costing system refers to the costing system in which manufacturing cost is computed after…

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: The following information is for a company that produced 10,000 units and sold 9,0000 units during…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

Q: Franz began business at the start of this year and had the following costs: variable manufacturing…

A: Variable costing and absorption costing are the two methods of determining product cost. Under the…

Q: MNO Products, Inc. planned and actually manufactured 200,000 units of its single product in 2020,…

A: Variable costing is also known as direct costing that assumes only variable manufacturing cost as…

Q: Requirements: a) Calculate unit product cost using absorption costing and variable costing. b)…

A: a) Calculate unit product cost using absorption costing and variable costing: Unit product cost…

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: In the previous year, a company’s total fixed manufacturing overhead costs were P13,600 and its…

A: Lower in operating income using variable costing versus absorption costing = Increase in ending…

Q: Assume the following information for a company that produced 10,000 units and sold 8,000 units…

A: 1st Year of Operation CALCULATION PARTICULAR AMOUNT       A Direct Material 69 B Direct…

Q: Helmers Corporation manufactures a single product. Variable costing net operating income last year…

A: Given information, ●Variable costing net operating income last year = $91,000 This year=$109,000.…

Q: n the last reporting period, Harold's Hat Company recorded 100,000 units sold for the first time in…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

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: A company had income of P50,000 using variable costing for a given period.  Beginning and ending…

A: Solution: Income using variable costing = P50,000 Fixed overhead per unit = P2 per unit Beginning…

Q: During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On…

A: Variable Costing: Managers frequently use variable costing for internal purposes for taking decision…

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…

Q: In the last reporting period, Helena's Heavenly Fixture Company recorded 80,000 units sold for the…

A: Contribution Margin: Contribution margin is the selling price of a product. It represents the money…

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.