NUBD Company began its operations on January 1, 2021 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were sold in 2021. Manufacturing costs and selling and administrative expenses were as follows: Fixed costs Variable costs Direct materials Direct labor Factory overhead Selling and administrative P 1.50 per unit produced 1.00 per unit produced 0.50 per unit produced 0.50 per unit sold P150,000 80,000 There were no variances from the standard variable costs. Any under or over-applied overhead is written off directly at year-end as an adjustment to the cost of goods sold.
NUBD Company began its operations on January 1, 2021 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were sold in 2021. Manufacturing costs and selling and administrative expenses were as follows: Fixed costs Variable costs Direct materials Direct labor Factory overhead Selling and administrative P 1.50 per unit produced 1.00 per unit produced 0.50 per unit produced 0.50 per unit sold P150,000 80,000 There were no variances from the standard variable costs. Any under or over-applied overhead is written off directly at year-end as an adjustment to the cost of goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
1. In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is?
2. What is the net income for 2021 under variable costing?
Transcribed Image Text:NUBD Company began its operations on January 1, 2021 and produces a single
product that sells for P7 per unit. Standard capacity is 100,000 units per year.
100,000 units were produced and 80,000 units were sold in 2021. Manufacturing
costs and selling and administrative expenses were as follows:
Fixed costs
Variable costs
Direct materials
Direct labor
Factory overhead
Selling and administrative
P 1.50 per unit produced
1.00 per unit produced
0.50 | per unit produced
0.50 per unit sold
P150,000
80,000
There were no variances from the standard variable costs. Any under or over-applied
overhead is written off directly at year-end as an adjustment to the cost of goods sold.
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