QUESTIONSA. Compute for the ending Finished Goods Inventory under Absorption costingB. Compute for the Ending Finished Goods Inventory under Variable Costing method Selling and administrative expenses are 60% fixed and 40% variableThe following data were taken from the records of NUBD Co.In UnitsInventory, Jan. 1ProductionAvailable for sale2020202120.00020,00013.0007.0007,00018,00025,00023,0002,000Unts soldInventory, Dec. 31Sales (P20 per unit)Variable manufacturing cost (P7.50 per unit)Fixed manufacturing costSelling and administrativeP 260,000150,00050,00045,000P460,000135,00054,00075,000

Answered: QUESTIONS A. Compute for the ending…

QUESTIONS A. Compute for the ending Finished Goods Inventory under Absorption costing B. Compute for the Ending Finished Goods Inventory under Variable Costing method

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 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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Question

QUESTIONS

A. Compute for the ending Finished Goods Inventory under Absorption costing

B. Compute for the Ending Finished Goods Inventory under Variable Costing method

Selling and administrative expenses are 60% fixed and 40% variable
The following data were taken from the records of NUBD Co.
In Units
Inventory, Jan. 1
Production
Available for sale
2020
2021
20.000
20,000
13.000
7.000
7,000
18,000
25,000
23,000
2,000
Unts sold
Inventory, Dec. 31
Sales (P20 per unit)
Variable manufacturing cost (P7.50 per unit)
Fixed manufacturing cost
Selling and administrative
P 260,000
150,000
50,000
45,000
P460,000
135,000
54,000
75,000

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