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Problem 1: Using absorption costing, JKL Company's income for October was Php250,000. JKL began the month with 10,000 units in finished goods inventory that contained Php30,000 of fixed manufacturing overhead costs. During October, the company produced 330,000 units and sold 325,000 units. The fixed manufacturing overhead for October totaled Php990,000. If JKL company used variable costing, its income for October would be
Option 1: P234,300
Option 2: P250,000
Option 3: P235,000
Option 4: P265,000
Option 5: None of the above
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