14. J Company produces a single product. Last year, the company had 25,000 units in its ending inventory. J'svariable production costs were P10 per unit and fixed manufacturing overhead costs were P5 per unit. The company's net operating income last year was P10,000 higher under variable costing than it was under absorption costing. Given these facts, the number of units of product in beginning inventory last year must have been *

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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14. J Company produces a single product. Last year, the company had
25,000 units in its ending inventory. J'svariable production costs were P1O
per unit and fixed manufacturing overhead costs were P5 per unit. The
company's net operating income last year was P10,000 higher under
variable costing than it was under absorption costing. Given these facts,
the number of units of product in beginning inventory last year must have
been *
a. 23,000 units
b. 24,000 units
c. 24,333 units
d. 27,000 units
Transcribed Image Text:14. J Company produces a single product. Last year, the company had 25,000 units in its ending inventory. J'svariable production costs were P1O per unit and fixed manufacturing overhead costs were P5 per unit. The company's net operating income last year was P10,000 higher under variable costing than it was under absorption costing. Given these facts, the number of units of product in beginning inventory last year must have been * a. 23,000 units b. 24,000 units c. 24,333 units d. 27,000 units
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