Reference no: EM133166816

Question - Buttercup Corp. had sales of 75,000 units and production of 100,000 units during its first year of operation. Other information for the year included:

Direct Labor P187,500

Variable manufacturing overhead P100,000

Direct Materials P150,000

Variable selling expenses P120,000

Fixed administrative expenses P130,000

Fixed manufacturing overhead P200,000

There was no beginning and ending work-in process inventory.

Required -

1. Compute the per unit cost under each of the following methods:

a. Variable Costing

b. Absorption Costing

2. Compute the cost of goods manufactured and the cost of goods sold using the different costing methods.

3. Compute the value of the ending finished goods inventory under the different costing methods.