Rebel Company manufactures a single product and has the following cost structure: Variable cost per unit Fixed Costs Production P5 Production P32,000 Selling & administrative 3 Selling & administrative 16,000 During the year, 8,000 units were produced, and 7,800 units were sold.

Rebel Company manufactures a single product and has the following cost structure: Variable cost per unit Fixed Costs Production P5 Production P32,000 Selling & administrative 3 Selling & administrative 16,000 During the year, 8,000 units were produced, and 7,800 units were sold.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

1. The carrying value of ending inventory under variable costing would be: _________. Present as is if higher or present it in parenthesis if it is less ex: (200)

2. Under absorption costing, the cost of goods sold would be:

3. By producing 4,000 units and selling 3,600 units of its only product, RNA company incurred the following costs: variable factory costs: P12; variable selling and administrative cost: P3; Fixed factory overhead: P36,000; fixed selling and administrative costs: P40,000. Assuming a beginning inventory of zero, the value of the ending inventory under absorption costing would be:

Rebel Company manufactures a single product and has the following cost structure:
Variable cost per unit
Fixed Costs
Production
P5
Production
Р32,000
Selling & administrative
3
Selling & administrative
16,000
During the year, 8,000 units were produced, and 7,800 units were sold.

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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