Oblivion Corporation produced 10,000 units of Product A during the month of November. Costs incurred during the month were as follows: Direct Materials used P20,000 Direct labor P16,000 Variable manufacturing overhead P8,000 Fixed manufacturing overhead P10,000 Variable selling and administrative expenses P2,400 Fixed selling and administrative expenses P9,000 P65,400 1. What were Product A's product cost per unit under absorption and variable costing? 2. How much of these costs should be inventoried for external reporting purposes?

Oblivion Corporation produced 10,000 units of Product A during the month of November. Costs incurred during the month were as follows: Direct Materials used P20,000 Direct labor P16,000 Variable manufacturing overhead P8,000 Fixed manufacturing overhead P10,000 Variable selling and administrative expenses P2,400 Fixed selling and administrative expenses P9,000 P65,400 1. What were Product A's product cost per unit under absorption and variable costing? 2. How much of these costs should be inventoried for external reporting purposes?

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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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

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Oblivion Corporation produced 10,000 units of Product A during the month of November. Costs incurred
during the month were as follows:
Direct Materials used
P20,000
Direct labor
P16,000
Variable manufacturing overhead
P8,000
Fixed manufacturing overhead
P10,000
Variable selling and administrative expenses
P2,400
Fixed selling and administrative expenses
P9,000
P65,400
1. What were Product A's product cost per unit under absorption and variable costing?
2. How much of these costs should be inventoried for external reporting purposes?

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