Selected information concerning the operations of Prima Donna Company for the year ended December 31, 2016, is available as follows: Units produced 10,000 Units sold
Selected information concerning the operations of Prima Donna Company for the year ended December 31, 2016, is available as follows:
Units produced 10,000
Units sold 9,000
Direct materials used P40,000
Direct labor cost incurred 20,000
Fixed factory
Variable factory overhead 12,000
Fixed selling and administrative expenses 30,000
Variable selling and administrative expenses 4,500
Finished goods inventory, January 1, 2015 None
There were no work-in-process inventories at the beginning and end of 2016.
What would be Prima Donna’s finished goods inventory cost at December 31, 2016, under the variable (direct) costing method?
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