STRAIGHT PROBLEMS (CY = current year; PY = past year; NY = next year) %3D %3D 1. Unit product costs, profit and cost of ending inventory. Northern Bicycle produces an inexpensive motorbike that sells for P12,000. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold 300 1,000 800 Units in ending inventory Variable costs per unit: Direct materials 500 P 1,300 800 Direct labor Manufacturing overhead Selling and administrative Fixed costs per year: 500 200 Manufacturing overhead Selling and administrative P 4,000,000 2,000,000 Required: 1. Compute the unit costs under absorption and variable costing methods. 2. Compute the operating income under absorption and variable costing methods. 3. Compute the value of ending inventory under absorption and variable costing methods. Reconcile the difference in operating income under the absorption and variable costing methods. 4.
STRAIGHT PROBLEMS (CY = current year; PY = past year; NY = next year) %3D %3D 1. Unit product costs, profit and cost of ending inventory. Northern Bicycle produces an inexpensive motorbike that sells for P12,000. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold 300 1,000 800 Units in ending inventory Variable costs per unit: Direct materials 500 P 1,300 800 Direct labor Manufacturing overhead Selling and administrative Fixed costs per year: 500 200 Manufacturing overhead Selling and administrative P 4,000,000 2,000,000 Required: 1. Compute the unit costs under absorption and variable costing methods. 2. Compute the operating income under absorption and variable costing methods. 3. Compute the value of ending inventory under absorption and variable costing methods. Reconcile the difference in operating income under the absorption and variable costing methods. 4.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
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