Question 1 Sales totaled P840,000 for the year, variable selling expenses totaled

These are available for A Company: P60,000, and fixed selling and administrative expenses totaled
A Company P180,000. There were no units in the beginning inventory. The
Income Statement – Direct Costing Method contribution margin per unit is P34
For the Month ended May 31, 20-2 Question 5
A Company sells a single product for P30. It had no beginning
Sales (P10 per unit) P 900,000 inventories. Operating data follow.
Variable Cost of Goods Sold: Sales, 12,000 units P360,000
Beginning Inventory P 125,000 Normal capacity 20,000 units
Variable Cost of Goods Manufactured 400,000 Production costs:
Goods available for Sale P 525,000 Variable per unit P15
Ending Inventory 75,000 Fixed production P75,000
Variable Cost of Goods Sold P 450,000 Selling and administrative expenses:
Variable Selling expense 90,000 Variable per unit sold P5
Total Variable Costs 540,000 Fixed selling P25,000
Contribution Margin P 360,000 Number of units produced 13,000 units
Fixed Costs: Assume the actual costs were as budgeted. The Company applies
Manufacturing P 240,000 standard absorption costing using normal capacity as the basis for
Selling and Administrative 90,000 computing the standard fixed cost per unit. The standard gross profit
Total Fixed Costs 330,000 per unit is __________________P11
Net Income P 30,000 Question 6
During May 20-2, 80,000 units were manufactured. The amount of A Company that produces a single product has provided the following
company’s inventory on May 1, under the absorption costing would data concerning its most recent month of operations:
be_______________P20,000; P200,000.00 Units in beginning inventory...................... 0
Question 2 Units produced.......................................... 1,900
A Co has developed a new design to produce hurdles that are used Units sold................................................... 1,700
in track and field competition. The company's hurdle design is Units in ending inventory........................... 200
innovative in that the hurdle yields when hit by a runner and its height Unit sales Price P160
is extraordinarily easy to adjust. Management estimates expected Variable costs per unit:
annual capacity to be 90,000 units; overhead is applied using Direct materials...................................... P33
expected annual capacity. The company's cost accountant predicts Direct labor............................................. P32
the following activities and related costs: Variable manufacturing overhead.......... P2
Standard unit variable manufacturing costs P12 Variable selling and administrative........ P6
Variable unit selling expense P5 Fixed costs:
Fixed manufacturing overhead P450,000 Fixed manufacturing overhead.............. P72,200
Fixed selling and administrative expenses P136,000 Fixed selling and administrative............. P6,800
Selling price per unit P35 The amount of fixed overhead deferred to assets value for the month
Units of sales 80,000 under absorption costing is ______________P7,600
Units of production 85,000 Question 7
Units in beginning inventory 10,000 A Company incurred the following costs during the past year when
Other than any possible under- or overapplied fixed overhead, planned production and actual production each totaled 20,000 units,
management expects no variances from the previous manufacturing and sold 15,000 units at P50:
costs. Under- or overapplied fixed overhead is to be written off to Direct materials used P280,000
Cost of Goods Sold. The operating income under standard Direct labor 120,000
absorption costing is _____________________P879,000.00 Variable manufacturing overhead 160,000
Question 3 Fixed manufacturing overhead 100,000
A Co began business at the start of the current year. The company Variable selling and administrative costs 60,000
planned to produce 25,000 units, and actual production conformed to Fixed selling and administrative costs 90,000
expectations. Sales totaled 22,000 units at P30 each. Costs The period cost under absorption costing is ____________ P150,000
incurred were: Question 8
Fixed manufacturing overhead P150,000 A Co has developed a new design to produce hurdles that are used in
Fixed selling and administrative cost 100,000 track and field competition. The company's hurdle design is innovative
Variable manufacturing cost per unit 8 in that the hurdle yields when hit by a runner and its height is
Variable selling and administrative cost per unit 2 extraordinarily easy to adjust. Management estimates expected
The amount of difference between the contribution margin annual capacity to be 90,000 units; overhead is applied using expected
and gross profit would be________________ P88,000 annual capacity. The company's cost accountant predicts the following
Question 4 activities and related costs:
A Company produces a single product. Last year, the company Standard unit variable manufacturing costs P12
manufactured 15,000 units and sold 12,000 units. Production costs Variable unit selling expense P5
for the year were as follows: Fixed manufacturing overhead P450,000
Direct materials...................................................... P150,000 Fixed selling and administrative expenses P136,000
Direct labor............................................................ P180,000 Selling price per unit P35
Variable manufacturing overhead......................... P135,000 Units of sales 80,000
Fixed manufacturing overhead.............................. P210,000 Units of production 85,000
Units in beginning inventory 10,000 Fixed Costs:
Other than any possible under- or overapplied fixed overhead, Manufacturing P 240,000
management expects no variances from the previous manufacturing Selling and Administrative 90,000
costs. Under- or overapplied fixed overhead is to be written off to Total Fixed Costs 330,000
Cost of Goods Sold. The standard cost of sales under variable Net Income P 30,000
costing will be _____________ P960,000 During May 20-2, 80,000 units were manufactured. The peso
Question 9 difference in amount of income under absorption and variable costing
A Company produces a single product. Last year, A manufactured will amount to _______________.P30,000.00
15,000 units and sold 12,000 units. Production costs for the year Question 13
were as follows: The book of A Company pertaining to its operation for year ended
Direct materials...................................................... P150,000 December 31, 20-6 showed the following figures:
Direct labor............................................................ P180,000 Beginning inventories- finished goods and work in process None
Variable manufacturing overhead......................... P135,000 No. of units produced 40,000
Fixed manufacturing overhead.............................. P210,000 No. of units sold at P15 each 32,500
Sales totaled P840,000 for the year, variable selling expenses Direct Material cost P177,500
totaled P60,000, and fixed selling and administrative expenses Direct Labor cost 85,000
totaled P180,000. There were no units in the beginning inventory. Fixed manufacturing costs 110,000
The Company uses standard absorption costing at normal capacity of Variable manufacturing costs 61,500
14,000. the cost of inventory under standard absorption costing Fixed Administrative expense 30,000
is______________P135,000 There was no ending work in process inventory. Under absorption
Question 10 costing, the finished goods inventory costs as at December 31, 20-6
A Company incurred the following costs during the past year when would amount to__________. P81,375
planned production and actual production each totaled 20,000 units, Question 14
and sold 15,000 units at P50: A Company sells a single product for P30. It had no beginning
Direct materials used P280,000 inventories. Operating data follow.
Direct labor 120,000 Sales, 12,000 units P360,000
Variable manufacturing overhead 160,000 Normal capacity 20,000 units
Fixed manufacturing overhead 100,000 Production costs:
Variable selling and administrative costs 60,000 Variable per unit P15
Fixed selling and administrative costs 90,000 Fixed production P75,000
the peso difference between the operating income under absorption Selling and administrative expenses:
costing and operating income under variable is? P25,000.00 Variable per unit sold P5
Question 11 Fixed selling P25,000
A Company sells a single product for P30. It had no beginning Number of units produced 13,000 units
inventories. Operating data follow. Assume the actual costs were as budgeted.
Sales, 12,000 units P360,000 The Company applies standard absorption costing using normal
Normal capacity 20,000 units capacity as the basis for computing the standard fixed cost per unit.
Production costs: The Volume variance will be _________P26,260
Variable per unit P15 Question 15
Fixed production P75,000 A Company that produces a single product has provided the following
Selling and administrative expenses: data concerning its most recent month of operations:
Variable per unit sold P5 Units in beginning inventory...................... 0
Fixed selling P25,000 Units produced.......................................... 1,900
Number of units produced 13,000 units Units sold................................................... 1,700
Assume the actual costs were as budgeted. Units in ending inventory........................... 200
The Company uses standard absorption costing using normal Unit Sales Price P160
capacity as the basis for computing the standard fixed cost per unit. Variable costs per unit:
The operating income under standard absorption costing is P23,750 Direct materials...................................... P33
Question 12 Direct labor............................................. P32
These are available for A Company: Variable manufacturing overhead.......... P2
A Company Variable selling and administrative........ P6
Income Statement – Direct Costing Method Fixed costs:
For the Month ended May 31, 20-2 Fixed manufacturing overhead.............. P72,200
Sales (P10 per unit) P 900,000 Fixed selling and administrative............. P6,800
Variable Cost of Goods Sold: The operating income under absorption costing is ____P76,500.00
Beginning Inventory P 125,000
Variable Cost of Goods Manufactured 400,000
Goods available for Sale P 525,000
Ending Inventory 75,000
Variable Cost of Goods Sold P 450,000
Variable Selling expense 90,000
Total Variable Costs 540,000
Contribution Margin P 360,000