Black Widow Company had the following costs for 2020: Raw materials P700,000 Direct labor P100,000 Miscellaneous FOH P80,000 Depreciation on machines P40,000 Rent for the factory building P50,000 Rent for dales office P30,000 Depreciation on store equipment P20,000 How much of those costs should be inventoried under absorption (A) and variable (V) costing methods? Select one: a. (A) P970,000; (V) P800,000 b. (A) P1,000,000; (V) P880,000 c. (A) P1,020,000; (V) P880,000 d. (A) P930,000; (V) P800,000
Black Widow Company had the following costs for 2020: Raw materials P700,000 Direct labor P100,000 Miscellaneous FOH P80,000 Depreciation on machines P40,000 Rent for the factory building P50,000 Rent for dales office P30,000 Depreciation on store equipment P20,000 How much of those costs should be inventoried under absorption (A) and variable (V) costing methods? Select one: a. (A) P970,000; (V) P800,000 b. (A) P1,000,000; (V) P880,000 c. (A) P1,020,000; (V) P880,000 d. (A) P930,000; (V) P800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Black Widow Company had the following costs for 2020:
| Raw materials | P700,000 |
| Direct labor | P100,000 |
| Miscellaneous FOH | P80,000 |
| P40,000 | |
| Rent for the factory building | P50,000 |
| Rent for dales office | P30,000 |
| Depreciation on store equipment | P20,000 |
How much of those costs should be inventoried under absorption (A) and variable (V) costing methods?
Select one:
a. (A) P970,000; (V) P800,000
b. (A) P1,000,000; (V) P880,000
c. (A) P1,020,000; (V) P880,000
d. (A) P930,000; (V) P800,000
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