On January 1, 2016, Omega Company has 16,000 units in its beginning inventory. During the year, the company’s variable production costs were P6 per unit and its fixed overhead costs were P4 per unit. The company’s net income for the year was P24,000 higher under absorption costing than it was under direct costing. Given these facts, the number of units of product in the ending inventory on December 31, 2016, must have been?

On January 1, 2016, Omega Company has 16,000 units in its beginning inventory. During the year, the company’s variable production costs were P6 per unit and its fixed overhead costs were P4 per unit. The company’s net income for the year was P24,000 higher under absorption costing than it was under direct costing. Given these facts, the number of units of product in the ending inventory on December 31, 2016, must have been?

Name: On January 1, 2016, Omega Company has 16,000 units in its beginning in
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Description: On January 1, 2016, Omega Company has 16,000 units in its beginning inventory. During the year, the company’s variable production costs were P6 per unit and its fixed overhead costs were P4 per unit. The company’s net income for the year was P24,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3CMA

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