Everlasting Co. has the following data pertaining to its 1st quarter of operations: January Activity level - units February March Production 10,000 10,000 10,000 Sales 10,000 7,000 11,000 Cogs incurred in the different areas of operation were as follows: Per Per unit month Direct Materials P 20 Direct Labor 15 Variable factory overhead Fixed factory overhead Variable selling and 12 P60,000 5 administrative Fixed selling and 30,000 administrative Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.
Everlasting Co. has the following data pertaining to its 1st quarter of operations: January Activity level - units February March Production 10,000 10,000 10,000 Sales 10,000 7,000 11,000 Cogs incurred in the different areas of operation were as follows: Per Per unit month Direct Materials P 20 Direct Labor 15 Variable factory overhead Fixed factory overhead Variable selling and 12 P60,000 5 administrative Fixed selling and 30,000 administrative Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute for:
a. Unit product cost under absorption costing.
b. Unit product cost under variable costing.
c. Ending inventory (February) under variable costing.
d. Ending inventory (February) under absorption costing.
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