Oblivion Corporation produced 10,000 units of Product A during the month of November. Costs incurred during the month were as follows: Direct Materials used P20,000 Direct labor P16,000 Variable manufacturing overhead P8,000 Fixed manufacturing overhead P10,000 Variable selling and administrative expenses P2,400 Fixed selling and administrative expenses P9,000 P65,400 1. What were Product A's product cost per unit under absorption and variable costing? 2. How much of these costs should be inventoried for external reporting purposes?

Oblivion Corporation produced 10,000 units of Product A during the month of November. Costs incurred during the month were as follows: Direct Materials used P20,000 Direct labor P16,000 Variable manufacturing overhead P8,000 Fixed manufacturing overhead P10,000 Variable selling and administrative expenses P2,400 Fixed selling and administrative expenses P9,000 P65,400 1. What were Product A's product cost per unit under absorption and variable costing? 2. How much of these costs should be inventoried for external reporting purposes?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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