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What would net operating income using absorption costing

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Problem 1: Pharsa Corporation produces a single product. Last year, the company had net operating income of P40,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was P1.60 per unit, what would have been the net operating income using absorption costing?

Reference no: EM132663436

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