Question 17 and 18 are based on the following information.

The excerpt presented below was taken

from Smurf Company’s records for the fiscal year ended November 30:
Direct materials used P300,000
Direct labor 100,000
Variable factory overhead 50,000
Fixed factory overhead 80,000
Selling and administrative cost - variable 40,000
Selling and administrative cost – fixed 20,000

1. If Smurf Company uses variable costing, the inventoriable costs for the current fiscal year are
A. 530,000 C. 450,000
B. 400,000 D. 490,000

2. Using absorption (full) costing, inventoriable costs are

A. P530,000 C. 450,000
B. P400,000 D. 590,000

3. Compute for the inventory under the direct costing method using the data given: units unsold at
the end of the period 45,000; raw materials used, P6.00 per unit; raw materials inventory,
beginning, P5.90 per unit; direct labor, P3.00 per unit; variable overhead per unit, P2.00 per
unit; indirect labor for the month, P33,750. Total fixed costs, P67,500.
A. P17.45 C. P11.00
B. P16.90 D. P19.15

4. Care Company’s 2013 fixed manufacturing overhead cost totaled P100,000 and variable seliing
costs totaled P80,000. Under direct costing, how should these costs be classified?
Period Cost Product Cost
A. P 0 P 180,000
B. P 80,000 P 100,000
C. P 100,000 P 80,000
D. P 180,000 P 0
5. With a production of 200,000 units of product A during the month of June, Bucayao Corporation
had incurred costs as follows:
Direct Materials P 200,000
Direct labor used 135,000
Manufacturing overhead:
Variable 75,000
Fixed 90,000
Selling and administrative expenses:
Variable 30,000
Fixed 85,000
Total P 615,000
Under absorption costing, the unit cost of product A was:
A. P 2.05 C. P 2.50
P 2.