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Business
Accounting
Sales per unit P15.00 Variable production cost 8.00 Annual fixed production cost 35,000.00 Variable selling expense (unit) 3.00 Annual fixed selling expense 15,000.00 Produced 12,500 units during the period No inventory at January 1 (beg.) Sold 10,000 units 21. The ending inventory under direct costing is a. P25,000  b. P27,500  c. P20,000  d. P32,500 22. Ending inventory under absorption costing is a. P32,500  b. P20,000  c. P25,000  d. P27,000

Sales per unit P15.00 Variable production cost 8.00 Annual fixed production cost 35,000.00 Variable selling expense (unit) 3.00 Annual fixed selling expense 15,000.00 Produced 12,500 units during the period No inventory at January 1 (beg.) Sold 10,000 units 21. The ending inventory under direct costing is a. P25,000  b. P27,500  c. P20,000  d. P32,500 22. Ending inventory under absorption costing is a. P32,500  b. P20,000  c. P25,000  d. P27,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales per unit P15.00
Variable production cost 8.00
Annual fixed production cost 35,000.00
Variable selling expense (unit) 3.00
Annual fixed selling expense 15,000.00
Produced 12,500 units during the period
No inventory at January 1 (beg.)
Sold 10,000 units

21. The ending inventory under direct costing is
a. P25,000 
b. P27,500 
c. P20,000 
d. P32,500

22. Ending inventory under absorption costing is
a. P32,500 
b. P20,000 
c. P25,000 
d. P27,000

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