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9. What amount should be considered product cost for external reporting purposes? 10. What is the product cost per unit under variable costing? 11. What is the variable cost per unit for purposes of computing the contribution margin?

9. What amount should be considered product cost for external reporting purposes? 10. What is the product cost per unit under variable costing? 11. What is the variable cost per unit for purposes of computing the contribution margin?

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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Problem C. During January 2020, ABC company produced 1,000 units of product Z with the following costs: Materials P6,000 Labor 3,300 Variable factory overhead Fixed factory overhead Total manufacturing costs 2,500 1,500 P13,300 Selling and administrative costs incurred during the month were: Variable selling and administrative costs Fixed selling and administrative costs Total selling and administrative costs Р3,200 2,000 P5,000 ABC company uses JIT system. It does not keep inventories in stock. Instructions: 9. What amount should be considered product cost for external reporting purposes? 10. What is the product cost per unit under variable costing? 11. What is the variable cost per unit for purposes of computing the contribution margin? 12. What is the net income for January 2020 under absorption costing?
Transcribed Image Text:Problem C. During January 2020, ABC company produced 1,000 units of product Z with the following costs: Materials P6,000 Labor 3,300 Variable factory overhead Fixed factory overhead Total manufacturing costs 2,500 1,500 P13,300 Selling and administrative costs incurred during the month were: Variable selling and administrative costs Fixed selling and administrative costs Total selling and administrative costs Р3,200 2,000 P5,000 ABC company uses JIT system. It does not keep inventories in stock. Instructions: 9. What amount should be considered product cost for external reporting purposes? 10. What is the product cost per unit under variable costing? 11. What is the variable cost per unit for purposes of computing the contribution margin? 12. What is the net income for January 2020 under absorption costing?
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