PROBLEM I, During the year 200A, Wouie Corporation's production was equal to its normalcapacity of 1,000 units, It sold 900 units at a price of P50 per unit, The following costswere incurred during the year:Total CostP 12,00010,0008,0006,0004,500Cost per UnitP 12Direct MaterialsDirect Labor10Variable Factory OverheadFixed Factory Overhead&8VariableSellingAdministrativeExpensesFixed Selling & Administrative Expenses3,0003Variable selling and administrative cost per unit= Total / Units Sold= P 4,500 / 900= P 5Required:1. Product cost per unit under absorption and variable costing2. Income under absorption and variable costing3. Computation of and accounting for the difference in income

Under Variable costing, fixed manufacturing overheads are considered as period costs, thus, the…

PROBLEM I, During the year 200A, Wouie Corporation's production was equal to its normal capacity of 1,000 units, It sold 900 units at a price of P50 per unit, The following costs were incurred during the year: Total Cost P 12,000 10,000 8,000 6,000 4,500 Cost per Unit P 12 Direct Materials Direct Labor 10 Variable Factory Overhead Fixed Factory Overhead & 6 Variable Selling Administrative 5 Expenses Fixed Selling & Administrative Expenses 3,000 3 Variable selling and administrative cost per unit = Total / Units Sold = P 4,500 / 900 = P 5 Required: 1. Product cost per unit under absorption and variable costing 2, Income under absorption and variable costing 3. Computation of and accounting for the difference in income

PROBLEM I, During the year 200A, Wouie Corporation's production was equal to its normal capacity of 1,000 units, It sold 900 units at a price of P50 per unit, The following costs were incurred during the year: Total Cost P 12,000 10,000 8,000 6,000 4,500 Cost per Unit P 12 Direct Materials Direct Labor 10 Variable Factory Overhead Fixed Factory Overhead & 6 Variable Selling Administrative 5 Expenses Fixed Selling & Administrative Expenses 3,000 3 Variable selling and administrative cost per unit = Total / Units Sold = P 4,500 / 900 = P 5 Required: 1. Product cost per unit under absorption and variable costing 2, Income under absorption and variable costing 3. Computation of and accounting for the difference in income

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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