Reference no: EM132633389

Operating Income, inventoriable costs, and costs of ending inventory. Golden Company produces an inexpensive product that sells for P160. Selected data for the company's operations last year follow:

Units ending inventory 4,000

Normal Capacity 50,000

Variable costs per unit

Direct Materials P25

Direct Labor P40

Manufacturing overhead P45

Selling and administrative P10

Fixed costs per unit:

Manufacturing overhead P20

Selling and administrative P15

The fixed selling and administrative expenses are also based on normal capacity

Required:

Problem a. Determine the operating income under absorption and variable costing methods assuming the following independent cases:

          Production                   Sales

A.    50,000                       53,000

B.    50,000                      48,000

C.    50,000                     50,000

D.    54,000                   35,000

E.       48,000                 51,500