For the year 2020, the following cost data are available for Bernie Company: Direct Materials P335,000 Direct Labor P500,000 Variable FOH P365,000 Fixed FOH P300,000 The company produced 150,000 units and sold 135,000 units. There are no beginning and ending inventories of work in process and no beginning inventory of finished goods. Required: 1. Compute Finished Goods Inventory at the end of 2020 under Variable Costing. 2. Compute Finished Goods Inventory at the end of 2020 under Absorption Costing.

For the year 2020, the following cost data are available for Bernie Company: Direct Materials P335,000 Direct Labor P500,000 Variable FOH P365,000 Fixed FOH P300,000 The company produced 150,000 units and sold 135,000 units. There are no beginning and ending inventories of work in process and no beginning inventory of finished goods. Required: 1. Compute Finished Goods Inventory at the end of 2020 under Variable Costing. 2. Compute Finished Goods Inventory at the end of 2020 under Absorption Costing.

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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