Kulittalaga Company produces a single product. Last year, the companys net operating income computed by the absorption coting method was P36, 000, and its net operating income computed by the variable method was P26, 000. The companys unit product cost was P18 under variable costing. During the period, inventory changed by 5, 000 units. The companys unit product cost under absorption costing was:

VARIABLE COSTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Kulittalaga Company produces a single product. Last year, the company’s net operating income computed by the absorption coting method was P36, 000, and its net operating income computed by the variable method was P26, 000. The company’s unit product cost was P18 under variable costing. During the period, inventory changed by 5, 000 units. The company’s unit product cost under absorption costing was:

A	20
B	18
C	16
D	2

Explanation:

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ECONOMICS

COST ACCOUNTING

VARIABLE COSTING