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Problem 1: JKL Company produces a single product. At the end of last year, the company had 30,000 units in its ending inventory. JKL's variable production costs are Php10 per unit and its fixed manufacturing overhead costs are Php5 per unit every year. The company's net operating income for the year was Php12,000 higher under variable costing than under absorption costing. Given these facts, the number of units of product in inventory at the beginning of the year must have been
Option 1: 27,600 units
Option 2: 28,800 units
Option 3: 32,400 units
Option 4: 42,400 units
Option 5: none of the above.
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