Unit sold2,000Units produced2,200Fixed manufacturing overhead₱44,000Variable manufacturing overhead12,000Fixed selling and administrative expenses18,000Variable selling and administrative expenses10,000Direct materials used30,000DIrect labor24,000Inventory, beginning in units24,000No work in process inventory Questions:1. Compute for the ending Finished Goods Inventory under Absorption costing.2. Compute for the Ending Finished Goods Inventory under Variable Costing method

The Only Difference between Absorption costing and Variable Costing is related to Fixed…

Answered: Compute for the ending Finished Goods…

Compute for the ending Finished Goods Inventory under Absorption costing. 2. Compute for the Ending Finished Goods Inventory under Variable Costing method

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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Question

Unit sold	2,000
Units produced	2,200
Fixed manufacturing overhead	₱44,000
Variable manufacturing overhead	12,000
Fixed selling and administrative expenses	18,000
Variable selling and administrative expenses	10,000
Direct materials used	30,000
DIrect labor	24,000
Inventory, beginning in units	24,000
No work in process inventory

Questions:

1. Compute for the ending Finished Goods Inventory under Absorption costing.
2. Compute for the Ending Finished Goods Inventory under Variable Costing method

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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