Kilihea Corporation's absorption costing income statement for July follows:

Kilihea Corporation
Income Statement
For the month ended July 31
Sales (9,500 units)		P427,500
Cost of Goods Sold:
Beginning Inventory	11,200
Add Cost of Goods Manufactured	280,000
Goods Available for Sale	291,200
Less Ending Inventory	25,200
Cost of Goods Sold		266,000
Gross Margin		161,500
Less Operating Expenses:
Fixed Administrative Expense	57,000
Variable Selling Expense	47,500
Total Operating Expenses		104,500
Net Operating Income		P 57,000

The company's variable production costs are P20 per unit and its fixed manufacturing overhead totals P80,000 per month.

1.Net operating income under the variable costing method for July would be:

2.The company's variable production costs are P20 per unit and its fixed manufacturing overhead totals P80,000 per month.

The contribution margin per unit during July was:

3.

The company's variable production costs are P20 per unit and its fixed manufacturing overhead totals P80,000 per month.

The carrying value on the balance sheet of Kilihea's ending inventory under variable costing would be:

ending inventory : 25,200