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Absoption VS Variable Costing

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kristelrunas6
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14 views12 pages

Absoption VS Variable Costing

Uploaded by

kristelrunas6
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

ABSORPTION

[Link]
COSTING
MA-04
REQUIREMENT #1

A. ABSORPTION COSTING
=DM+DL+VFOH+FFOH
=P30,000+15,000+5,000+25,000
=P75,000 (INVENTORIABLE
COST)
=P75,000 / 50 (UNITS
PRODUCED)
=P1500/UNIT (ABSORPTION)
REQUIREMENT #1

B. VARIABLE COSTING
=DM+DL+VFOH
=P30,000+15,000+5,000
=P50,000 (INVENTORIABLE
COST)
=P50,000 / 50 (UNITS
PRODUCED)
=P1000/UNIT (ABSORPTION)
REQUIREMENT #2

A. ABSORPTION COSTING
=15u(EI) x P1500/u *computed
=P22,500 (EI @ AC)
B. VARIABLE COSTING
=15u(EI) x P1000/u *computed
=P15,000 (EI @ VC)
REQUIREMENT #3

A. ABSORPTION COSTING
SALES P 80,000

-COST OF 60,000
SALES
GROSS 20,000
PROFIT
-EXPENSES 10,000

NET INCOME P 10,000


REQUIREMENT #3

B. VARIABLE COSTING
SALES P 80,000
-VARIABLE 46,000
COSTS
CONTRIBUTION 34,000
MARGIN
FIXED COSTS 29,000

PROFIT P 5,000
REQUIREMENT #5

A. INVENTORY X UNIT FFOH

10 UNITS (15(EI)-5(BI)
X
500/UNIT (25,000/50) *BASED ON
PRODUCTION

=P 5,000 PROFIT
PALATANDAAN…
HIGHER INCOME

• ABSORPTION/PRODUCTION/ENDING
INVENTORY
• VARIABLE/SALES/BEGINNING INVENTORY

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