. Unit product costs, profit and cost of ending inventory. Northem Bicycle produces an inexpensive motorbike that sells for P 12,000. Selected data for the company's operation last year follow: Units in beginning inventory Units produced P 300 1,000 Units sold 800 Units in ending inventory Variable cost per unit: 500 Direct Materials P 1,300 Direct Labor 800 Manufacturing overhead 500
. Unit product costs, profit and cost of ending inventory. Northem Bicycle produces an inexpensive motorbike that sells for P 12,000. Selected data for the company's operation last year follow: Units in beginning inventory Units produced P 300 1,000 Units sold 800 Units in ending inventory Variable cost per unit: 500 Direct Materials P 1,300 Direct Labor 800 Manufacturing overhead 500
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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Question
![1. Unit product costs, profit and cost of ending inventory. Northem Bicycle produces an
inexpensive motorbike that sells for P 12,000. Selected data for the company's
operation last year follow:
P 300
Units in beginning inventory
Units produced
1,000
Units sold
800
Units in ending inventory
Variable cost per unit:
500
Direct Materials
P 1,300
Direct Labor
800
Manufacturing overhead
500
Selling and administrative
200
Fixed cost per year:
Manufacturing overhead
P4.000.000
2,000,000
Selling and administrative
Required:
1. Compute the operating income under absorption and variable costing methods.
2. Reconcile the difference in operating income under the absorption and
variable costing methods.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83a62274-19c5-4e55-a434-09c36945587d%2F7cb44a5a-01ed-4d29-b581-fbd86a34119c%2Ffw1s3kk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Unit product costs, profit and cost of ending inventory. Northem Bicycle produces an
inexpensive motorbike that sells for P 12,000. Selected data for the company's
operation last year follow:
P 300
Units in beginning inventory
Units produced
1,000
Units sold
800
Units in ending inventory
Variable cost per unit:
500
Direct Materials
P 1,300
Direct Labor
800
Manufacturing overhead
500
Selling and administrative
200
Fixed cost per year:
Manufacturing overhead
P4.000.000
2,000,000
Selling and administrative
Required:
1. Compute the operating income under absorption and variable costing methods.
2. Reconcile the difference in operating income under the absorption and
variable costing methods.
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