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2. All of the following are inventoried under variable costing, except A. Direct materials. B. Direct labor. C. Variable manufacturing overhead. D. Fixed manufacturing overhead. E. Items C and D above.

2. All of the following are inventoried under variable costing, except A. Direct materials. B. Direct labor. C. Variable manufacturing overhead. D. Fixed manufacturing overhead. E. Items C and D above.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. All of the following are inventoried under variable costing, except A. Direct materials. B. Direct labor. C. Variable manufacturing overhead. D. Fixed manufacturing overhead. E. Items C and D above. 3. All of the following are expensed under variable costing, except A. Variable manufacturing overhead. B. Fixed manufacturing overhead. C. Variable selling and administrative costs. D. Fixed selling and administrative costs. E. Items C and D above. 4. All of the following costs are inventoried under absorption costing, except A. Direct materials. B. Direct labor. C. Variable manufacturing overhead. D. Fixed manufacturing overhead. E. Fixed administrative salaries. 5. All of the following are inventoried under absorption costing, except A. Direct labor. B. Raw materials used in production. C. Utilities cost consumed in manufacturing. D. Sales commissions. E. Machine lubricant used in production. PROBLEMS Problem 1 1. Operating income under absorption costing method is 2. Operating income under is variable (direct) costing method 3. Operating income under throughput costing method is P19,700 P19,100 P17,660 4. The amount of ending inventory reported under absorption costing method is P4,500 5. If the number of units sold is equal to its production of 1,500 units, the amount of ending reported under absorption costing method is P1,500 6. If 1,600 units were sold instead, what would be the operating income under variab method? P27,300 Problem 2 7. What would the income be if variable costing was used? P96,500 Problem 3 8. What would the income be if absorption costing was used? P57,500 Problem 4 9. If the ending inventory consisted of 2,520 units, the beginning inventory in units must 1,870 units Problem 5 10. The net income/(loss) under variable costing is P16,500 loss P27,000 11. The amount of ending inventory under absorption costing is 12. The net income/(loss) under throughput costing is P28,500 loss Problem 6 13. The difference between the operating income of Salvador using the variable and costing methods? P50,000 A>V
Transcribed Image Text:2. All of the following are inventoried under variable costing, except A. Direct materials. B. Direct labor. C. Variable manufacturing overhead. D. Fixed manufacturing overhead. E. Items C and D above. 3. All of the following are expensed under variable costing, except A. Variable manufacturing overhead. B. Fixed manufacturing overhead. C. Variable selling and administrative costs. D. Fixed selling and administrative costs. E. Items C and D above. 4. All of the following costs are inventoried under absorption costing, except A. Direct materials. B. Direct labor. C. Variable manufacturing overhead. D. Fixed manufacturing overhead. E. Fixed administrative salaries. 5. All of the following are inventoried under absorption costing, except A. Direct labor. B. Raw materials used in production. C. Utilities cost consumed in manufacturing. D. Sales commissions. E. Machine lubricant used in production. PROBLEMS Problem 1 1. Operating income under absorption costing method is 2. Operating income under is variable (direct) costing method 3. Operating income under throughput costing method is P19,700 P19,100 P17,660 4. The amount of ending inventory reported under absorption costing method is P4,500 5. If the number of units sold is equal to its production of 1,500 units, the amount of ending reported under absorption costing method is P1,500 6. If 1,600 units were sold instead, what would be the operating income under variab method? P27,300 Problem 2 7. What would the income be if variable costing was used? P96,500 Problem 3 8. What would the income be if absorption costing was used? P57,500 Problem 4 9. If the ending inventory consisted of 2,520 units, the beginning inventory in units must 1,870 units Problem 5 10. The net income/(loss) under variable costing is P16,500 loss P27,000 11. The amount of ending inventory under absorption costing is 12. The net income/(loss) under throughput costing is P28,500 loss Problem 6 13. The difference between the operating income of Salvador using the variable and costing methods? P50,000 A>V
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