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In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is *

In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is *

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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In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is * O NUBD Company began its operations on January 1, 2021 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were sold in 2021. Manufacturing costs and selling and administrative expenses were as follows: Fixed costs Variable costs Direct materials Direct labor Factory overhead Selling and administrative P150,000 80,000 P 1.50 per unit produced 1.00 per unit produced 0.50 per unit produced 0.50 per unit sold There were no variances from the standard variable costs. Any under or over-applied overhead is written off directly at year-end as an adjustment to the cost of goods sold. O P2.50 O P3.00 O P3.50 O P4.50
Transcribed Image Text:In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is * O NUBD Company began its operations on January 1, 2021 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were sold in 2021. Manufacturing costs and selling and administrative expenses were as follows: Fixed costs Variable costs Direct materials Direct labor Factory overhead Selling and administrative P150,000 80,000 P 1.50 per unit produced 1.00 per unit produced 0.50 per unit produced 0.50 per unit sold There were no variances from the standard variable costs. Any under or over-applied overhead is written off directly at year-end as an adjustment to the cost of goods sold. O P2.50 O P3.00 O P3.50 O P4.50
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