Rebel Company manufactures a single product and has the following cost structure: Variable cost per unit Fixed Costs Production P5 Production P32,000 Selling & administrative Selling & administrative 16,000

Rebel Company manufactures a single product and has the following cost structure: Variable cost per unit Fixed Costs Production P5 Production P32,000 Selling & administrative Selling & administrative 16,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Required:

1. The carrying value of ending inventory under variable costing would be?

2. Under absorption costing, the cost of good sold would be?

Rebel Company manufactures a single product and has the following cost structure:
Variable cost per unit
Fixed Costs
Production
P5
Production
P32,000
Selling & administrative
3
Selling & administrative
16,000
During the year, 8,000 units were produced, and 7,800 units were sold.

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