Reference no: EM132561464

Alabang Company's records for the year ended December 31 showed that there were no work-in process inventories at the beginning and end of the year:

Net Sales                                            P 700,000
Cost of Goods Manufactured
Variable                                         315,000
Fixed                                             157,500
Operating Expenses
Variable                        49,000
Fixed                          70,000
Units Manufactured        70,000 units
Units Sold                      60,000 units

REQUIRED:

Question 1. Under the variable costing method, what would be Alabang's finished goods inventory cost at December 31?

Question 2. Under the absorption costing method, what would be Alabang's finished goods inventory cost at December 31?

Question 3. Under the variable costing method, operating income of Alabang Company for the year would be?

Question 4. Under the absorption costing method, operating income of Alabang Company for the year would be?