1 Valarmorghulis Company Was Organized Just A Year Ago The Normal Capacity And Actua 2830173
1. ValarMorghulis Company was organized just a year ago. The normal capacity and actual production of the company is 2,500 units. The results of the company’s first year of operations are shown below.
ValarMorghulis Company
Income Statement
Sales (2,000 units sold)
P 135,000
Less: Cost of goods sold:
Beginning Inventory
P 0
Cost of Goods Manufactured
105,000
Goods Available for Sale
P 105,000
Ending Inventory
21,000
84,000
Gross Margin
51,000
Less: Selling and Administrative expenses
42,000
Net Income
P 9,000
The company’s unit variable cost is computed as follows:
Variable manufacturing cost
P 32
Variable Selling and Administrative expenses
5
Total Variable cost per unit
P 37
REQUIRED:
1. What is the Selling price per unit? Fixed MOH per unit application?
2. What is the total fixed manufacturing cost? Total fixed selling and administrative expense?
3. What the net income under full costing? Under direct costing?
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