5. By producing 4,000 units and selling 3,600 units of its onlyproduct, RNA company incurred the following costs: variablefactory costs: P12; variable selling and administrative cost: P3;Fixed factory overhead: P36,00O; fixed selling and administrativecosts: P40,000. Assuming a beginning inventory of zero, thevalue of the ending inventory under absorption costing wouldbe:Your answer

Solution: Fixed factory overhead per unit = 36000/ 4000 = 9 per unit Unit product cost = 12 + 9 = 21…

5. By producing 4,000 units and selling 3,600 units of its only product, RNA company incurred the following costs: variable factory costs: P12; variable selling and administrative cost: P3; Fixed factory overhead: P36,000; fixed selling and administrative costs: P40,000. Assuming a beginning inventory of zero, the value of the ending inventory under absorption costing would be:

5. By producing 4,000 units and selling 3,600 units of its only product, RNA company incurred the following costs: variable factory costs: P12; variable selling and administrative cost: P3; Fixed factory overhead: P36,000; fixed selling and administrative costs: P40,000. Assuming a beginning inventory of zero, the value of the ending inventory under absorption costing would be:

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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