Question
Bolte Manufacturing operations for 2017are as follows: $ Per unit: Sales price50 Direct material cost18 Direct wages4 Variable production overhead3 Per month: Fixed production overhead
Bolte Manufacturing operations for 2017are as follows:
$
Per unit:
Sales price50
Direct material cost18
Direct wages4
Variable production overhead3
Per month:
Fixed production overhead 99 000
Fixed selling expenses14000
Fixed administration expenses26000
Variable selling expenses is 10% of sales value.
Normal capacity was 11000 units per month.
JanuaryFebruary
UnitsUnits
Sales1000012000
Production 1200010000
Using the two methods:
A. Compute the unit production cost(4marks)
B. Determine the value of the closing inventory (7marks)
C. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April (22 marks)
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