Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

INFORMATION The following forecasts for January 2021 were provided by Waltons Manufacturers: Sales (36 000 units) Direct materials cost per unit Direct labour cost per

INFORMATION The following forecasts for January 2021 were provided by Waltons Manufacturers: Sales (36 000 units) Direct materials cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Fixed manufacturing overheads Fixed marketing and administrative costs Sales commission R1 080 000 R8 R5 R2 R150 000 R120 000 10% of sales

QUESTION 2 (10 Marks) REQUIRED Prepare the Income Statement of Waltons Manufacturers for the month ended 28 February 2021 using the absorption costing method. INFORMATION The following forecasts were obtained from the accounting records of Waltons Manufacturers for the month ended 28 February 2021: Inventory on 01 February 2021 Nil Production 25 000 units Sales 23 000 units Selling price per unit R100 Manufacturing costs: Fixed manufacturing costs R240 000 per month Variable manufacturing costs per unit R42 Marketing costs: Sales personnels salaries and advertising R40 000 per month Delivery costs R5 per unit sold Administration costs: Salaries R50 000 per month Other office costs R4 per unit sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Accounting For Inventory

Authors: Steven M. Bragg

2nd Edition

1938910648, 9781938910647

More Books

Students also viewed these Accounting questions

Question

Does mind reading help or hinder communication?

Answered: 1 week ago