Last year, Francis Company had 20,000 units in its ending inventory. During the year, Francis's production costs were P12 per unit. The fixed manufacturing overhead cost was P8 per unit in the beginning inventory. The company's profit for the year was P9,600 higher under variable costing than it is under absorption costing. Given these facts, the number of units of production in the beginning inventory last year must have been:

ALDERSGATE COLLEGE COURSE AUDIT 1

SCHOOL OF BUSINESS AND ACCOUNTANCY

19 | CA 1

a. 21,200

b. 19,200

c. 18,800

d. 19,520

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