Reference no: EM132784079
Question - During the month of November, ABC Inc. produced 1,000 units of Product A with costs as follows:
Direct Materials P6,000
Direct Labor P3,300
Variable Factory Overhead P2,500
Fixed Factory Overhead P1,500
Total Manufacturing Costs P13,500
Selling and administrative costs incurred during the month were:
Variable selling and administrative P3,000
Fixed Selling and administrative 2,000
Total P5,000
Selling Price per Unit P 20.00
ABC Inc. uses the JIT system. It does not keep inventories in stock.
Required -
1. What amount should be considered product cost for external reporting purposes?
P13.30
P18.30
P11.80
P14.80
2. What is the variable costing per unit for purposes of computing the contribution margin?
P13.30
P18.30
P11.80
P14.80
3. Under absorption costing, income for November 2020 was?
P8,200
P5,200
P6,700
P1,700