50 per unit Selling price                                                                                           P125 per unit Fixed production overhead                                                    P200,000 per quarter Fixed selling and administrative overhead                            P80,000 per quarter

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Don Juan Ltd. Manufactures a single product for which the costs and selling prices are:

Variable production costs                                                                   P  50 per unit

Selling price                                                                                           P125 per unit

Fixed production overhead                                                    P200,000 per quarter

Fixed selling and administrative overhead                            P80,000 per quarter

Normal capacity                                                                 20,000 units per quarter

Production in first quarter was 19,000 units and sales volume was 16,000 units.  No opening inventory for the quarter.

The absorption costing profit for the quarter was

A. P920,000                                                     
B. P950,000
C. P960,000
D. P970,000

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