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

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

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?