roblem 8: The following information was extracted from the first vear of absorption-based
roblem 8: The following information was extracted from the first vear of absorption-based
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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![Problem 8: The following information was extracted from the first year of absorption-based
accounting records of a company:
P 100,000
Total Fixed Costs Applied
Total Variable Costs Incurred
(Manufacturing & Selling Costs)
Total Period Costs incurred
P 50,000
P 70,000
P 30,000
Total Variable Period Costs incurred
Units produced
Units sold
20,000
12,000
P12.00
Unit selling price
Required:
1. How much is the company's net income using absorption costing?
2. How much would be the company's net income if it was using variable costing?
3. The value of the ending inventory under absorption costing would be?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F498d3a97-d450-443f-8065-a446d9fc9263%2F1e07b6c1-55a0-4a54-9359-94c8ae8af252%2F6uvx6d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 8: The following information was extracted from the first year of absorption-based
accounting records of a company:
P 100,000
Total Fixed Costs Applied
Total Variable Costs Incurred
(Manufacturing & Selling Costs)
Total Period Costs incurred
P 50,000
P 70,000
P 30,000
Total Variable Period Costs incurred
Units produced
Units sold
20,000
12,000
P12.00
Unit selling price
Required:
1. How much is the company's net income using absorption costing?
2. How much would be the company's net income if it was using variable costing?
3. The value of the ending inventory under absorption costing would be?
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