B. Johnson Co. produces a single product. Last year, the firm had 25,000 units in its ending inventory. Johnson's variable production costs were P10 per unit and fixed manufacturing overhead costs were P5 per unit. The company's net operating income last year was $10,000 lower under variable costing than it was under absorption costing. Given these facts, the number of units of product in beginning inventory last year must be: A. 27,000 C. 24,000 B. 24,333 D. 23,000

B. Johnson Co. produces a single product. Last year, the firm had 25,000 units in its ending inventory. Johnson's variable production costs were P10 per unit and fixed manufacturing overhead costs were P5 per unit. The company's net operating income last year was $10,000 lower under variable costing than it was under absorption costing. Given these facts, the number of units of product in beginning inventory last year must be: A. 27,000 C. 24,000 B. 24,333 D. 23,000

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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Subject :- Accounting
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