Under Absorption Costing, Net sales of Pacquiao Incorporated totaled P500,000 and the gross profit is 35% based on net sales. Cost of goods sold includes both variable and fixed manufacturing cost. Operating expenses that was fixed in nature amounted to P115,000 during the year. Assuming there is no beginning inventory and the ending inventory is 20% of all produced units during the year, how much is the Net income under variable costing if the total fixed manufacturing cost was P70,000 during the year?
Under Absorption Costing, Net sales of Pacquiao Incorporated totaled P500,000 and the gross profit is 35% based on net sales. Cost of goods sold includes both variable and fixed manufacturing cost. Operating expenses that was fixed in nature amounted to P115,000 during the year. Assuming there is no beginning inventory and the ending inventory is 20% of all produced units during the year, how much is the Net income under variable costing if the total fixed manufacturing cost was P70,000 during the year?
Chapter1: Financial Statements And Business Decisions
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Under Absorption Costing, Net sales of Pacquiao Incorporated totaled P500,000 and the gross profit is 35% based on net sales. Cost of goods sold includes both variable and fixed manufacturing cost . Operating expenses that was fixed in nature amounted to P115,000 during the year.
Assuming there is no beginning inventory and the ending inventory is 20% of all produced units during the year, how much is the Net income under variable costing if the total fixed manufacturing cost was P70,000 during the year?
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