Reference no: EM13258533
The following information is available for Panasonic company new product line:
ParticularsRs.
Sales price per unit15
Variable manufacturingcost per unit 8
Total annual fixedmanufacturing cost 25,000
Variableadministrative cost per unit 3
Total annual fixedmarketing and administrative expenses 15,000
There was no inventoryat the beginning of the year. Normal capacity is 12,500 units. During the year, 12,500 unitswere produced and 10,000 units were sold. Read theabove case study carefully and write down the correctoption number(e-g A, B, C, D) in the given Excel file
1. What is the value of ending inventory, assuming the use of direct costing?
A. Rs.7,500
B.Rs.15,000
C.Rs.20,000
D.Rs.10,000
2. What is the valueof ending inventory, assuming the use of absorptioncosting?
A. Rs.7,500
B.Rs.15,000
C.Rs.25,000
D.Rs.10,000
3. Total variablecost charged to expense for the year, assuming the use of directcosting?
A.Rs.115,500
B.Rs.137,500
C.Rs.117,500
D.Rs.110,500
4. Total fixed costcharged to expense for the year, assuming the use of absorptioncosting?
A.Rs.20,000
B.Rs.15,000
C.Rs.35,000
D.Rs.40,000
5. What is the valueof Total fixed manufacturing cost per unit?
A. Rs.1
B. Rs.8
C. Rs.2
D. Rs.3
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