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Question - The following information is available for FFF Co. for its first year of operations
Sales in units 5,500
Production in units 8,000
Manufacturing costs
Prime costs P8 per unit
Variable overhead P1 per unit
Fixed overhead P110,000
Net income (absorption method) P30,000
Sales price per unit P40,000
Required -
1. What would FFF Co. have reported as its income before income taxes if it had used variable costing?
2. What was the total amount of Selling, General and Administrative expenses incurred by FFF Co.?
3. Based on variable costing, what would FFF co. shows as the value of its ending inventory?
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