During the most recent year, Lonely Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (P300 per unit) Variable costs per unit: Direct Materials Direct labor Variable overhead Fixed Costs Fixed overhead per unit produced Fixed selling and administrative expense Required: 8,000 P 100 P 50 P 25 10,000 P 50 P100,000 1. Prepare income statement using Variable costing 2. How many units in ending inventory? 3. Using the absorption costing, compute the product cost per unit.
During the most recent year, Lonely Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (P300 per unit) Variable costs per unit: Direct Materials Direct labor Variable overhead Fixed Costs Fixed overhead per unit produced Fixed selling and administrative expense Required: 8,000 P 100 P 50 P 25 10,000 P 50 P100,000 1. Prepare income statement using Variable costing 2. How many units in ending inventory? 3. Using the absorption costing, compute the product cost per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Direction: Show computations
During the most recent year, Lonely Company had the following data associated
with the product it makes:
Units in beginning inventory
Units produced
Units sold (P300 per unit)
Variable costs per unit:
Direct Materials
Direct labor
Variable overhead
Fixed Costs
Fixed overhead per unit produced
Fixed selling and administrative expense
Required:
8,000
P 100
P 50
P 25
10,000
P 50
P100,000
1. Prepare income statement using Variable costing
2.
How many units in ending inventory?
3. Using the absorption costing, compute the product cost per unit.
4. Using the Variable costing, compute the product cost per unit.
5. What is the value of ending inventory under Variable costing?
6. What is the value of ending inventory under Absorption costing?
Compute the net income under Absorption costing.
7.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4b3f495-2ed0-42b2-93ba-12000b70fe95%2Fcac8dcac-66a0-4e64-86e7-c8728e464868%2Fwbassef_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Direction: Show computations
During the most recent year, Lonely Company had the following data associated
with the product it makes:
Units in beginning inventory
Units produced
Units sold (P300 per unit)
Variable costs per unit:
Direct Materials
Direct labor
Variable overhead
Fixed Costs
Fixed overhead per unit produced
Fixed selling and administrative expense
Required:
8,000
P 100
P 50
P 25
10,000
P 50
P100,000
1. Prepare income statement using Variable costing
2.
How many units in ending inventory?
3. Using the absorption costing, compute the product cost per unit.
4. Using the Variable costing, compute the product cost per unit.
5. What is the value of ending inventory under Variable costing?
6. What is the value of ending inventory under Absorption costing?
Compute the net income under Absorption costing.
7.
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