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VC Vs AC

This document contains two examples of calculating costs under variable and absorption costing methods. For the first example, the total period costs under variable costing are P134,400. Income statements are prepared using both variable and absorption costing. For the second example, the product cost per unit under variable costing is P73. Income statements are again prepared using both costing methods.

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Clarissa Labayog
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141 views

VC Vs AC

This document contains two examples of calculating costs under variable and absorption costing methods. For the first example, the total period costs under variable costing are P134,400. Income statements are prepared using both variable and absorption costing. For the second example, the product cost per unit under variable costing is P73. Income statements are again prepared using both costing methods.

Uploaded by

Clarissa Labayog
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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VC vs AC Costing

A.A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:

Selling price............................................... P79

Units in beginning inventory..................... 0


Units produced........................................... 6,600
Units sold................................................... 6,300
Units in ending inventory........................... 300

Variable costs per unit:


Direct materials....................................... P14
Direct labor............................................. 30
Variable manufacturing overhead........... 4
Variable selling and administrative......... 8

Fixed costs:
Fixed manufacturing overhead............... P46,200
Fixed selling and administrative............. P88,200

What is the total period cost for the month under the variable costing approach?
Prepare income statement using variable and absorption costing.

B.A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:

Units in beginning inventory..................... 0


Units produced........................................... 1,900
Units sold................................................... 1,700
Units in ending inventory........................... 200

Variable costs per unit:


Direct materials....................................... P33
Direct labor............................................. 32
Variable manufacturing overhead........... 2
Variable selling and administrative......... 6

Fixed costs:
Fixed manufacturing overhead............... P72,200
Fixed selling and administrative............. 6,800

How much is the product cost under variable costing?


Prepare income statement using variable and absorption costing.

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