Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help! Problem 5: Kakulitkulit Company produces a single product. Last year, the company's net operating income computed by the absorption costing method was P36,000.

Please help!
image text in transcribed
Problem 5: Kakulitkulit Company produces a single product. Last year, the company's net operating income computed by the absorption costing method was P36,000. The company's unit product cost was P18 under variable costing and P22 under absorption costing. During the period, inventory increased by 5,000 units. The company's income under variable costuing must have been: OP20,000 O P16,000 OP41,000 OP56,000 Problem 6 During the year, Anduban Corporation produced 500 units of a new product. The new product's variable and fixed manufacturing cost per unit were P5 and P3, respectively. At the end of the period, the new product's inventory consisted of 80 units. What would be the change in the peso amount of inventory at the end of the period if absorption costing were used instead of variable costing? OP640 increase O P400 increase O P240 increase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Analytics Methods And Techniques For Forensic Accounting Investigations

Authors: Mark J. Nigrini

2nd Edition

1119585767, 9781119585763

More Books

Students also viewed these Accounting questions

Question

3. Speak respectfully. Use the students name.

Answered: 1 week ago