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Assign. Absorption vs. Variable
Assign. Absorption vs. Variable
Other information for the year included: Direct manufacturing labor P187,500.00 Variable manufacturing overhead 100,000.00 Direct materials 150,000.00 Variable selling expenses 100,000.00 Fixed administrative expenses 100,000.00 Fixed manufacturing overhead 200,000.00 There was no beginning inventory. Required: a. Compute the ending finished goods inventory under both absorption and variable costing. b. Compute the COGS under both absorption and variable costing. 2. Sofia Company sells its products for P66.00 each. The current production level is 25,000 units, although only 20,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials Direct manufacturing labor Variable manufacturing costs Total manufacturing costs Marketing expenses