Operating Income, inventoriable costs, and costs of ending inventory. Golden Company produces an inexpensive product that sells for P160. Selected data for the company's operations last year follow:

Units ending inventory 4,000

Normal Capacity 50,000

Variable costs per unit

Direct Materials P25

Direct Labor P40

Manufacturing overhead P45

Selling and administrative P10

Fixed costs per unit:

Manufacturing overhead P20

Selling and administrative P15

The fixed selling and administrative expenses are also based on normal capacity

Required:

a. Determine the operating income under absorption and variable costing methods assuming the following independent cases:

Production Sales

A. 50,000 53,000

B. 50,000 48,000

C. 50,000 50,000

D. 54,000 35,000

E. 48,000 51,500

ANSWER THE FF.

A. VARIABLE NET INCOME and ABSORPTION NET INCOME

B. VARIABLE NET INCOME and ABSORPTION NET INCOME

C. ABSORPTION NET INCOME

D. VARIABLE NET INCOME

E. ABSORPTION NET INCOME