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Question - The following information pertains to Ponyo's Corp.'s production and operation during 2019:
Manufacturing
Non-Manufacturing
Total Variable Cost incurred
P300,000
P100,000
Fixed Costs incurred
P200,000
P160,000
The company produced 20,000 units which is equal to the company's budgeted production. It was able to sell 21,000 units at P40 each. At the end of the year, an inventory account revealed that the company has no new materials and work-in process inventory however there are 4,000 units in finished goods inventory.
Required -
1. What is the value of the ending inventory under variable costing?
2. What is the value of the ending inventory under absorption costing?
3. How much is the company's net income under variable costing?
4. How much is the company's net income under absorption costing?
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