ITEMS 46 to 50 ARE BASED ON THE FOLLOWING INFORMATION:During January 200A, Liquigan, Inc. Produced 1,000 units of Product A with costs as follows:Materials P 6,000Labor 3,300Variable Factory Overhead 2,500Fixed Factory Overhead 1.500Total manufacturing costs P13,300Selling and administrative costs incurred during the month were:Variable selling and administrative P 3,000Fixed selling and administrative 2.000P 5,000Selling price per unit P20.00Liquingan, Inc. Used the JIT system. It does not keep inventories in stock.46. What amount should be considered product cost for external reporting purposes?a. P13.30b. P18.30c. P11.80d. P14.8047. What is the product cost per unit under variable costing?a. P13.30b. P18.30c. P11.80d. P14.8048. What is the variable cost per unit for purposes of computing the contribution margin?a. P13.30b. P18.30c. P11,80d. P14.8049. Under absorption costing, income for January 200A wasa. P8,200.b. P5,200.c. P6,700.d. P1,70050. What would income be if variable costing were used?a. Equal to income under absorption costing because thatshould always be the case.b. Equal to income under absorption costing because the total fixedoverhead costs expensed under both methods are the same.c. An amount greater than that under absorption costing because production is equal to sales. d. Anamount less than that under absorption costing because there is no change in inventory.

Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

46. What amount should be considered product cost for external reporting purposes? a. P13.30 b. P18.30 c. P11.80 d. P14.80 47. What is the product cost per unit under variable costing? P13.30 a. b. P18.30 c. P11.80 d. P14.80 48. What is the variable cost per unit for purposes of computing the contribution margin? a. P13.30 b. P18.30 c. P11.80 d. P14.80

46. What amount should be considered product cost for external reporting purposes? a. P13.30 b. P18.30 c. P11.80 d. P14.80 47. What is the product cost per unit under variable costing? P13.30 a. b. P18.30 c. P11.80 d. P14.80 48. What is the variable cost per unit for purposes of computing the contribution margin? a. P13.30 b. P18.30 c. P11.80 d. P14.80

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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Question

ITEMS 46 to 50 ARE BASED ON THE FOLLOWING INFORMATION:
During January 200A, Liquigan, Inc. Produced 1,000 units of Product A with costs as follows:
Materials P 6,000
Labor 3,300
Variable Factory Overhead 2,500
Fixed Factory Overhead 1.500
Total manufacturing costs P13,300
Selling and administrative costs incurred during the month were:
Variable selling and administrative P 3,000
Fixed selling and administrative 2.000
P 5,000
Selling price per unit P20.00
Liquingan, Inc. Used the JIT system. It does not keep inventories in stock.
46. What amount should be considered product cost for external reporting purposes?
a. P13.30
b. P18.30
c. P11.80
d. P14.80
47. What is the product cost per unit under variable costing?
a. P13.30
b. P18.30
c. P11.80
d. P14.80
48. What is the variable cost per unit for purposes of computing the contribution margin?
a. P13.30
b. P18.30
c. P11,80
d. P14.80
49. Under absorption costing, income for January 200A was
a. P8,200.
b. P5,200.
c. P6,700.
d. P1,700
50. What would income be if variable costing were used?
a. Equal to income under absorption costing because that
should always be the case.
b. Equal to income under absorption costing because the total fixed
overhead costs expensed under both methods are the same.
c. An amount greater than that under absorption costing because production is equal to sales. d. An
amount less than that under absorption costing because there is no change in inventory.

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