South East Corp. produces D-2 toys with the following unit cost: Direct Materials P4.00 Direct labor P6.00 Factory overhead Variable P3.00 Fixed (based on a normal capacity of 10,000 units) P2.00 Beginning inventory 2,000 units Production 8,000 units Units sold (selling price P50) 7,000 units Additional expenses Variable selling and administrative P60,000 Fixed selling and administrative P35,000 How much are the net income under absorption costing and variable costing methods?

South East Corp. produces D-2 toys with the following unit cost: Direct Materials P4.00 Direct labor P6.00 Factory overhead Variable P3.00 Fixed (based on a normal capacity of 10,000 units) P2.00 Beginning inventory 2,000 units Production 8,000 units Units sold (selling price P50) 7,000 units Additional expenses Variable selling and administrative P60,000 Fixed selling and administrative P35,000 How much are the net income under absorption costing and variable costing methods?

Name: South East Corp. produces D-2 toys with the following unit cost:Direc
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Description: South East Corp. produces D-2 toys with the following unit cost:Direct Materials P4.00Direct labor P6.00Factory overheadVariable P3.00Fixed (based on a normal capacity of 10,000 units) P2.00Beginning inventory 2,000 unitsProduction 8,000 unitsUnits

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13PA: Grainger Company produces only one product and sells that product for $100 per unit. Cost...

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