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Buttercup Corp. had sales of 75,000 units and production of 100,000 units during its first year of operation. Other information for the year included: Direct
Buttercup Corp. had sales of 75,000 units and production of 100,000 units during its first year of operation. Other information for the year included:
Direct Labor P187,500 Variable manufacturing overhead P100,000 Direct Materials P150,000 Variable selling expenses P120,000 Fixed administrative expenses P130,000 Fixed manufacturing overhead P200,000
There was no beginning and ending work-in process inventory.
Required:
- Compute theper unit costunder each of the following methods: a. Variable Costing b. Absorption Costing
- Compute thecost of goods manufacturedand thecost of goods soldusing the different costing methods.
- Compute the value of theending finished goods inventoryunder the different costing methods.
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