3. The following information is available for Bright Company's product: Sales price per unit P30 Variable manufacturing
Question:
3. The following information is available for Bright Company's product:
Sales price per unit P30
Variable manufacturing cost per unit of
production P16
Total fixed cost per year P50,000
Variable administrative cost per unit of
production P6
Total fixed selling and administrative expenses
per year P30,000
Normal capacity is 12,500 units. During the year, 12,500 units were produced of which 2,500 were njot
sold. There was no inventory at the beginning of the year.
Required:
a. Cost of inventory using variable costing
b. Cost of inventory using absorption costing
c. Total variable cost charged to expense for the year assuming variable costing is used.
d. Total fixed cost charged to expense for the year assuming variable costing is used.
e. Total fixed cost charged to expense for the year assuming absorption costing is used.