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?

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now