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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.
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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
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