Question
FOR REVISION PURPOSE A company manufactures a single product for which the following data based on a budgeted capacity of 80,000 units per month, are
FOR REVISION PURPOSE
A company manufactures a single product for which the following data based on a budgeted capacity of 80,000 units per month, are as follows:
Stock, output and sales data (in units)
Details | January |
Sales | 72,000 |
Closing stock | 2,000 |
Production | 70,000 |
Cost Data Per unit
Details | $ |
Direct materials | 10 |
Direct labour | 15 |
Variable Production overheads | 25 |
Fixed Production overheads | 30 |
Fixed administrative and selling overheads were estimated at $350,000 and $250,000 respectively. During the month, the company sold one unit of its product for $200.
Calculate:
Marginal Cost per unit
Full Cost per unit
Opening stock in units
Sales Revenue for the quarter
Cost of Sales using Marginal Costing
Total Contribution
Profit as per Marginal Costing statement
Unadjusted cost of sales
Adjusted Cost of Sales
Gross Profit using Absorption costing
Total Other Expenses using Absorption Costing for the quarter
The net profit using Absorption Costing
Fixed production overheads was over or under absorbed and by how much?
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