What is the Profit in 2019 under absorption costing? 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information are available for X Corp: (The company uses actual costing). What is the Profit in 2019 under absorption costing?
2019
Beginning Inventory None
Production 10,000 units
Ending Inventory 3,500 units
Sales at 2 per unit ??
Variable Mfg cost in total pesos 7,500
Fixed Mfg cost 5,000
OPEX (50% FC) 4,500
2020
Beginning Inventory ??
Production 9,000 units
Ending Inventory 1,000 units
Sales at 2 per unit ??
Variable Mfg cost in total pesos ??
Fixed Mfg cost 5,400 (increased by 400 for change of total FC of the company)
OPEX (50% FC) 7,500
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