Please show the solution on how to get the answer. Rainbow Company produces a single product. The following data were gathered from therecords of the companyVariable costs:Selling and Administrative P2.00 per unitProduction 4.00 per unitFixed Costs: (In total)Selling and Administrative P14, 000Production 20, 000Assume the following independent cases and answer the questions.Case 1. If the company produced and sold 5, 000 units and earned operating profit of P30,000 during the period under variable costing, what is the amount of selling price per unitCase 2. If the company uses absorption costing the total product cost to produce 4, 000units is ?Case 3. Assume that the company manufactured 5, 000 units and sold 3800 units with nobeginning inventory operating profit using absorption costing ?(greater or lesser) thanvariable costing system?.Case 4. If the company uses variable costing and manufactured 5, 000 units and sold 4, 000,the finished goods inventory will amount to ?

Answer: as per Q/A guidelines, only first three subparts are to be answered Variable Cost: P…

Rainbow Company produces a single product. The following data were gathered from the records of the company Variable costs: Selling and Administrative P2.00 per unit Production 4.00 per unit Fixed Costs: (in total) Selling and Administrative P14, 000 Production 20, 000

Rainbow Company produces a single product. The following data were gathered from the records of the company Variable costs: Selling and Administrative P2.00 per unit Production 4.00 per unit Fixed Costs: (in total) Selling and Administrative P14, 000 Production 20, 000

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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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please show the solution on how to get the answer.

Rainbow Company produces a single product. The following data were gathered from the
records of the company
Variable costs:
Selling and Administrative P2.00 per unit
Production 4.00 per unit
Fixed Costs: (In total)
Selling and Administrative P14, 000
Production 20, 000
Assume the following independent cases and answer the questions.
Case 1. If the company produced and sold 5, 000 units and earned operating profit of P30,
000 during the period under variable costing, what is the amount of selling price per unit
Case 2. If the company uses absorption costing the total product cost to produce 4, 000
units is ?
Case 3. Assume that the company manufactured 5, 000 units and sold 3800 units with no
beginning inventory operating profit using absorption costing ?(greater or lesser) than
variable costing system?.
Case 4. If the company uses variable costing and manufactured 5, 000 units and sold 4, 000,
the finished goods inventory will amount to ?

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