22. PIBISCO Inc. manufactures and sells cookies at P12.50 per box, with each box containing 10o cookies. Income statement presented to shareholders for the quarter just ended are as follows: Sales (400 boxes) Cost of goods sold Gross margin Selling and administrative expenses Net income AC P5,000 3,200) Pi ,800 (800) P1,000 The company produced 500 boxes during the quarter. Variable manufacturing costs are P5.25 per box and fixed manufacturing overhead for the quarter totaled P1,375. Variable selling and administrative expenses are PO.90 per box. What is the company's direct net income? P725 B. P1,000 C. P2,265 D. P2,540 23. The following data were available for MATIYAGA CORPORATION: Direct materials used P 22,500 Payroll P 30,00 Variable OH (budgeted and actual) P2/unit Fixed OH (budgeted and actual) P 40,000 3 7,500 units 7,000 units Units produced Units sold Beginning inventory Normal capacity 8,000 units Any capacity variance is closed to cost of sales. How much is the cost of sales under (1) full AC costing and (2) direct costing? A (1) 98,000 (2) 63,000 B. (1) 100,310 (2) 65,500 (1) i 03,333 (2) 65,500 D. (1) 100,500 (2) 63,000 /. 24. A company that produces a single product had a net operating income of P85,500 using variable costing and a net operating income of P90,000 using absorption costing. Total fixed manufacturing overhead was P150,000, and production was 100,000 units. Between the beginning and the end of the year, the inventory level: A. increased by 4,500 units B. decreased by 4,500 units C. increased by 3,000 units 1 D. decreased by 3,000 units