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Dora Corporation manufactures a propeller. Shown below is Dora's cost structure:
Variable cost per propeller Total fixed cost for the year
Manufacturing cost P114 P810,000
Selling and administrative P20 P243,000
In its first year of operations, Dora produced 60,000 propellers but only sold 54,000.
Problem 1: What is the total cost that would be assigned to Eudora's finished goods inventory at the end of the first year of operations under the variable costing method?
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