4. JV Company began operations on Jan. 1, 2020 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were...

Extracted text: 4. JV Company began operations on Jan. 1, 2020 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were sold in 2020. Manufacturing costs, selling and administrative expenses were as follows: Fixed Costa Variable Costs PL.50 per unit produced P1.00 per unit produced PO.50 per unit produced PO.50 per unit sold Raw materials Direct labor Factory overhead Selling & Administrative P150,000 P80,000 There were no variances from the standard variable costs. Any under or over-applied overhead is written off directly at the year-end adjustment to cost of goods sold. In presenting inventory on the balance sheet at Dec. 31, 2020, the unit cost under absorption is d. P4.50 b. P3.00 с. Р3.50 e. None of these; answer is a. P2.50 5. Refer to no. 4. What is the net income for the year under direct costing? a. P50,000 b. P80,000 c. P90,000 d. Pi20,000 e. None of these; answer is