Everlasting Co. has the following data pertaining to its 1st quarter of operations: January Activity level - units February March Production 10,000 10,000 10,000 Sales 10,000 7,000 11,000 Cogs incurred in the different areas of operation were as follows: Per Per unit month Direct Materials P 20 Direct Labor 15 Variable factory overhead Fixed factory overhead Variable selling and 12 P60,000 5 administrative Fixed selling and 30,000 administrative Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.
Everlasting Co. has the following data pertaining to its 1st quarter of operations: January Activity level - units February March Production 10,000 10,000 10,000 Sales 10,000 7,000 11,000 Cogs incurred in the different areas of operation were as follows: Per Per unit month Direct Materials P 20 Direct Labor 15 Variable factory overhead Fixed factory overhead Variable selling and 12 P60,000 5 administrative Fixed selling and 30,000 administrative Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...
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Compute for:
a. Unit product cost under absorption costing.
b. Unit product cost under variable costing.
c. Ending inventory (February) under variable costing.
d. Ending inventory (February) under absorption costing.
Transcribed Image Text:Everlasting Co. has the following data pertaining to its 1st quarter of operations:
Activity level - units
January
February
March
Production
10,000
10,000
10,000
Sales
10,000
7,000
11,000
Cogs incurred in the different areas of operation were as follows:
Per
Per
unit
month
Direct Materials
P 20
Direct Labor
15
Variable factory overhead
12
Fixed factory overhead
P60,000
Variable selling and
5
administrative
Fixed selling and
30,000
administrative
Fixed factory overhead costs per month are based on the company's normal
capacity of 10,000 units. The company sells the product at P75 per unit.
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