ronman Company had a net income of P85,000 using variable costing and net income of P90,000 using absorption costing. Total fixed manufacturing overhead cost was P150,000, and production was 100,000 units. How did inventory level change during the activity? Select one: a. 3,000 units decrease b. 3,000 units increase c. 4,500 units increase d. 4,500 units decrease
ronman Company had a net income of P85,000 using variable costing and net income of P90,000 using absorption costing. Total fixed manufacturing overhead cost was P150,000, and production was 100,000 units. How did inventory level change during the activity? Select one: a. 3,000 units decrease b. 3,000 units increase c. 4,500 units increase d. 4,500 units decrease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ironman Company had a net income of P85,000 using variable costing and net income of P90,000 using absorption costing. Total fixed manufacturing overhead cost was P150,000, and production was 100,000 units. How did inventory level change during the activity?
Select one:
a. 3,000 units decrease
b. 3,000 units increase
c. 4,500 units increase
d. 4,500 units decrease
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