Labada Corporation produces a single product. Variable manufacturing cost is P20 per unit and fixed manufacturing cost is P150,000. Labada Corporation uses a normal activity of 5,000 units to set its standards Labada Corporation began the year with no inventory, produced 5,500 units, and sold 5,200 units 1. What is Labada Corporation's ending inventory cost using absorption costing?

Labada Corporation produces a single product. Variable manufacturing cost is P20 per unit and fixed manufacturing cost is P150,000. Labada Corporation uses a normal activity of 5,000 units to set its standards Labada Corporation began the year with no inventory, produced 5,500 units, and sold 5,200 units 1. What is Labada Corporation's ending inventory cost using absorption costing?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hanshaben
Nato Company was organized a year ago. The results of the company's first year of operations using the absorption costing method follow: Sales (40,000 units @ P33.75) Cost of goods manufactured (50,000 units @ 21) P1,050,000.00 Ending Inventory (10,000 units @ 21) Selling & administrative expenses Net Operating Income P1,350,000.00 P 210,000.00 P 420,000.00 P 90,000.00 The company's selling and administrative expenses consists of P300,000 per year in fixed expenses and P3.00 per unit sold in variable expenses. The product cost of P21 is computed as follows: Direct materials - P10.00; Direct labor – P4.00; Variable manufacturing overhead – P2.00; Fixed manufacturing overhead (P250,000/50,000 units) -P5.00. Compute for the operating income under variable costing.
Give me correct answer with explanation.
(b) For 2018, SQU Company had sales of 150,000 units and production of 200,000 units. There was no beginning inventory. Other information for the year included: Direct manufacturing labor Direct materials Fixed administrative expenses 100,000 Fixed manufacturing overhead 187,500 Variable manufacturing overhead 100,000 100,000 200,000 150,000 Variable selling expenses You are required to calculate under both the variable and absorption costing methoda the: inventoriable cost per unit, (i) Ending inventory, and (m) Cost of goods sold.
lagan, Inc. has collected the following data. (There are no beginning inventories.) Units produced Sales price 700 units $120 per unit Direct materials $50 per unit Direct labor Fixed manufacturing overhead $12 per unit Variable manufacturing overhead $9 per unit $17,500 per year Variable selling and administrative costs $4 per unit $18,000 per year Fixed selling and administrative costs What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold? OA. $21,300 OB. $15,000 C. $18,600 D. $6,300
What would be NUBD’s finished goods inventory at December 31, 2021 under the absorption costing method?
Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Please avoid solutions in an image format thanku
Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows: Direct Material $14 per Unit Direct Labor $24 per Unit Variable Overhead $4 per Unit Fixed Overhead $40,200 Selling expenses are $4 per unit and are all variable. Administrative expenses of $24,000 are all fixed. Grainger produced 6,000 units; sold 4,800; and had no beginning inventory. A. Compute net income under 1. Absorption Costing i Variable Costing B. Which costing method provide higher net income? By how much? The absorption costing ✔method provided more net income by Check My Work A. Remember that absorption costing includes all costs necessary for production. Conversely, variable costing only uses the variable costs that relate directly to the production process. Keep this in mind when calculating net income under each assumption. B. Depending on the cost method chosen, there will be differences due to the way fixed costs are treated under each…
Peta, SA manufactures a single product that had the following cost structure this year: Variable Manufacturing Cost per unit: $15 Variable Selling and Administrative cost per unit: $8 Fixed Manufacturing Cost, Total: $261,000 Fixed Selling and Administrative Costs, Total: $132,000 They sold 13,000 units for $60 each during the year, and produced 21,000 units. What is the ending finished goods inventory under variable costing? Select one: A. $99,429 less than under absorption costing. B. $50,286 less than under absorption costing. C. $114,286 less than under absorption costing. D. $120,000 less than under absorption costing. E. $64,000 less than under absorption costing.
XYZ Company uses normal costing. Following are various cost and inventory data for the just completed year: Sales revenue OMR420,0003; Adjusted gross profit OMR175,000; Selling and admin expenses OMR145,000 ; Overapplied overhead OMR15,000 ; Prime costs OMR155,000; Work in process inventory has increased by OMR10,000 ; Finished goods inventory has decreased by OMR20,000. How much is the manufacturing overhead costs applied to work in process during the year? Select one: a. OMR80,000 b. None of the answers given c. OMR95,000 d. OMR85,000 x e. OMR105,000 The correct answer is: OMR95,000
1. What would be Greg's finished goods inventory at December 31, 2021 under the absorption costing method?
Vinubhai