18. W Company produces a single product. Last year, the company had 16,000 units in its beginning inventory. During the year, the company's variable production costs were P6 per unit and its fixed manufacturing overhead costs were P4 per unit. The company's net operating income for the year was P24,000 higher under absorption costing than it was under variable costing. Given these facts, the number of units in the ending inventory must have been: * a. 22,000 units b. 10,000 units c. 6,000 units O d. 4,000 units

The level of inventory of a manufactured product has increased by 7,859 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $78,590 increase Ob. $62,872 increase Oc. $78,590 decrease Od. $62,872 decrease

Po.25.

On March 31, the end of the first year of operations, Barnard Inc., manufactured 5,500 units and sold 4,700 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1 Sales   $940,000    Variable cost of goods sold:     Variable cost of goods manufactured $528,000      Inventory, March 31 (76,800)     Total variable cost of goods sold   (451,200)   Manufacturing margin   $488,800    Total variable selling and administrative expenses   (112,800)   Contribution margin   $376,000    Fixed costs:     Fixed manufacturing costs $242,000      Fixed selling and administrative expenses 75,200        Total fixed costs     (317,200)   Operating income   $58,800    Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $fill in the blank 1 Absorption costing…