GHI Company produces a single product. During the year just ended, the company's net operating income under absorptions costing was Php3,000 lower than under variable costing. The company sold 9,000 units during the year, and its variable costs were Php9 per unit, of which Php3 was variable selling expense. If production cost is Php11 per unit under absorption costing every year, then how many units did the company produce during the year?

GHI Company produces a single product. During the year just ended, the company's net operating income under absorptions costing was Php3,000 lower than under variable costing. The company sold 9,000 units during the year, and its variable costs were Php9 per unit, of which Php3 was variable selling expense. If production cost is Php11 per unit under absorption costing every year, then how many units did the company produce during the year?

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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