Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price...............................................P138 Units in beginning inventory......................0 Units produced..........................................7,200 Units sold...................................................7,000 Units in ending inventory...........................200 Variable costs per unit: Direct materials......................................P42 Direct labor.............................................P32 Variable manufacturing overhead..........P1 Variable selling and administrative........P8 Fixed costs: Fixed manufacturing overhead..............P280,800 Fixed selling and administrative.............P98,000 Required: a.What is the net income under variable costing? b.What is the net income under variable costing? c.What is the fixed overhead deferred under absorption costing?
Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price...............................................P138
Units in beginning inventory......................0
Units produced..........................................7,200
Units sold...................................................7,000
Units in ending inventory...........................200
Variable costs per unit:
Direct materials......................................P42
Direct labor.............................................P32
Variable manufacturing
Variable selling and administrative........P8
Fixed costs:
Fixed manufacturing overhead..............P280,800
Fixed selling and administrative.............P98,000
Required:
a.What is the net income under variable costing?
b.What is the net income under variable costing?
c.What is the fixed overhead deferred under absorption costing?
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