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Questions 42 and 43 are based on the following iniormation. The books of Mariposa Company pertaining to the year ended December 31, 2014 operations, showed the following figures relating io product A: Beginning inventory-finished goods and work in process No. of units produced No. of units sold at P15 Direct materials used Direct labor used none 40,000 units 32,500 units P 177,500 85,000

Questions 42 and 43 are based on the following iniormation. The books of Mariposa Company pertaining to the year ended December 31, 2014 operations, showed the following figures relating io product A: Beginning inventory-finished goods and work in process No. of units produced No. of units sold at P15 Direct materials used Direct labor used none 40,000 units 32,500 units P 177,500 85,000

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 4E: The following production data came from the records of Olympic Enterprises for the year ended...
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Reconciliation of profit Questions 42 and 43 are based on the following iniormation. The books of Mariposa Company pertaining to the year ended December 31, 2014 operations, showed the following figures relating io product A: Beginning inventory-finished goods and work in process No. of units produced No. of units sold at P15 Direct materials used Direct labor used none 40,000 units 32,500 units P 177,500 85,000 Manufacturing costs: Fixed P 110,000 Variable 61,500 171.500 30,000 Fixed administrative expenses 42. Under variable costing, what would be the finished goods inventory as at December 31, 2014? P81,375.00 P 60,750.00 P 87,000.00 P 49,218.75 Answer not given с. а. b. d. (грера) е. )43. Which costing method, variable or absorption costing, would show a higher operating income for 2014, and by how much? Variable by P20,625. b. Absorption by P20,625. Variable by P26,250. Absorption by P26,250. Answer not given. с. a. d. (грера) e. 44. At the end of Kiko Company's first year operations, 1,000 units of inventory remained on hand. variable and fixed manufacturing cost per unit were P90 and P20, respectively. If Kiko uses absorption costing rather then direct (variable) costing, the result would be a higher pretax income of a. P20,000 b. P70,000 P 0 P90,000 с. d. (трсра) 45. During the year 2014, Catara Corporation manufactured 70,000 units of product A, a new product. Only 65,000 units were sold during the year. There was no beginning inventory. Manufacturing cost per unit was P20.00 variable and P50.00 fixed. What would be the effect on net income if absorption costing is used instead of vari- able costing? Net income is P250,000 lower. b. Net income is P250,000 higher. Net income is P100,000 lower. None of the above. a. c. d. (грсра)
Transcribed Image Text:Reconciliation of profit Questions 42 and 43 are based on the following iniormation. The books of Mariposa Company pertaining to the year ended December 31, 2014 operations, showed the following figures relating io product A: Beginning inventory-finished goods and work in process No. of units produced No. of units sold at P15 Direct materials used Direct labor used none 40,000 units 32,500 units P 177,500 85,000 Manufacturing costs: Fixed P 110,000 Variable 61,500 171.500 30,000 Fixed administrative expenses 42. Under variable costing, what would be the finished goods inventory as at December 31, 2014? P81,375.00 P 60,750.00 P 87,000.00 P 49,218.75 Answer not given с. а. b. d. (грера) е. )43. Which costing method, variable or absorption costing, would show a higher operating income for 2014, and by how much? Variable by P20,625. b. Absorption by P20,625. Variable by P26,250. Absorption by P26,250. Answer not given. с. a. d. (грера) e. 44. At the end of Kiko Company's first year operations, 1,000 units of inventory remained on hand. variable and fixed manufacturing cost per unit were P90 and P20, respectively. If Kiko uses absorption costing rather then direct (variable) costing, the result would be a higher pretax income of a. P20,000 b. P70,000 P 0 P90,000 с. d. (трсра) 45. During the year 2014, Catara Corporation manufactured 70,000 units of product A, a new product. Only 65,000 units were sold during the year. There was no beginning inventory. Manufacturing cost per unit was P20.00 variable and P50.00 fixed. What would be the effect on net income if absorption costing is used instead of vari- able costing? Net income is P250,000 lower. b. Net income is P250,000 higher. Net income is P100,000 lower. None of the above. a. c. d. (грсра)
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