Use the following information for Multiple Questions 34 through 35:

Gold Company began its operation on January 1, 2018, and produces a single product that sells for P10 per unit. Gold uses an actual cost system. In 2018, 100,000 units were produced and 80,000 units were sold. There was no work-in process inventory at December 31, 2018. Manufacturing costs and selling and administrative expenses for 2018 were as follows:

Fixed Costs Variable costs Raw materials - P 2.00 per unit produced Direct labor - 1.25 per unit produced Factory overhead P 120,000 0.75 per unit produced Selling and administrative 70,000 1.00 per unit produced

34. What would be Gold's operating income for 2018 under Variable (direct) costing method? a. P114,000 c. P234,000 b. P210,000 d. P330,000

35. What would be Gold's finished goods inventory at December 31, 2018, under full (absorption) costing method? a. P80,000 c. P110,000 b. P104,000 d. P124,000

Use the following information for Multiple Questions 36 through 39:

The following information is available for Kelly Company's new product line:

Selling price per unit P 15 Variable manufacturing cost per unit of production 8 Total annual fixed manufacturing costs 25,000 Variable administrative costs per unit of production 3 Total annual fixed selling and administrative expenses 15,000

There was no inventory beginning of the year. During the year, 12,500 units were produced and 10,000 units were sold.

36. The ending inventory, assuming Kelly uses direct (variable) costing method would be a. P25,000 c. P27,500 b. P32,500 d. P20,000

37. The ending inventory, assuming Kelly uses full (absorption) costing method would be a. P32,500 c. P20,000 b. P27,500 d. P25,000

38. The total variable costs charged to expenses for the year, assuming that Kelly uses direct (variable) costing would be a. P110,000 c. P117,500 b. P100,000 d. P 80,000

39. The total fixed costs charged against the current year's operations assuming that Kelly uses full (absorption) costing is a. P 35,000 c. P25,000 b. P40,000 d. P15,000

40. During October 2018, Gabby Company produced 10,000 units of Product G with costs as follows:

Direct materials P 40,000 Direct labor 22,000 Variable overhead 13,000 Fixed overhead 10,000

What is Gabby's unit cost of Product G for October 2018 calculated on direct (variable) costing basis? a. P 6.20 c. P 7.50 b. P 7.20 d. P 8.50

TEST 11 - PROBLEM SOLVING 10 points

Care Company sold 100,000 units of its products at P20.00 per unit. Variable costs are P14 per unit (manufacturing costs of P11 and selling expenses of P3). Fixed costs are incurred uniformly throughout the year and amount to P792,000 (manufacturing costs of P500,000 and selling expenses of P292,000).

REQUIRED: Calculate the following:

1. The break-even point in units

2. The break-even point in pesos

3. The number of units that must be sold to earn an income of P60,000 before income tax.