Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(30 marks) Game Ltd manufactures and sells product X. The following information is available for Game Ltd's financial year ending 31 December 2023: Actual

(30 marks) Game Ltd manufactures and sells product X. The following information is available for Game Ltd's 

(30 marks) Game Ltd manufactures and sells product X. The following information is available for Game Ltd's financial year ending 31 December 2023: Actual information: Opening Inventory Opening Inventory Units manufactured Sales Sales units Direct material Other variable production costs Sales commission cost Variable admin cost Total Fixed production cost Total Fixed Selling and Admin costs Budgeted information: Fixed production overheads Budgeted units Direct costing Absorption costing REQUIRED: R54 000 (6 000 Units) R85 500 (6 000 Units) 36 000 R800 000 34 000 R5 per unit R4 per unit R1,50 per unit R0,50 per unit R160 000 R130 000 R168 000 32 000 Additional information: Game Ltd values inventory using the First in First out ("FIFO") method. 2.1 Prepare the actual net profit statement using the direct costing method. (13 marks) 2.2 Prepare the actual net profit statement using the absorption costing method. (14 marks)

Step by Step Solution

3.41 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Certainly here are the net profit statements for Game Ltd using both the direct costing and absorption costing methods 21 Actual Net Profit Statement ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

7th Edition

978-1760421144, 1760421146

More Books

Students also viewed these Accounting questions

Question

Explain ET and how it would help you design a training program.

Answered: 1 week ago