Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer the question fully and as per Mark's take your time QUESTION 1 25 MARKS Namib Processor Limited makes and sells one product. The
please answer the question fully and as per Mark's take your time
QUESTION 1 25 MARKS Namib Processor Limited makes and sells one product. The standard production cost per unit is as follows: N$ 18 Direct Labour Direct Material Production overhead Production overhead 3 hours @ N$ 6 per hour 4 kg @ N$ 7 per kg Variable Fixed Standard Production cost 69 Normal output is 16 000 units per annum and this figure is used for the fixed production overhead calculation. Cost relating to selling, distribution and administration are: Variable is 20% of sales value Fixed is N$ 180 000 per annum The only variance is a fixed production overhead volume variance. There are no units in finished goods stock at 1 October 2017. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is N$ 140.00 The number of units to be produced and sold for the two six monthly period detailed bellow is budgeted as follows; Six months ending 31 March 2017 8500 7000 Six months ending 30 September 2017 7 000 8 000 Sales REQUIRED: 1.1 Prepare the statements of comprehensive income for the two six monthly periods as per, (10) (a) Variable costing method (b) Absorption costing method (c) Reconcile the profit between the two methods (5) (10) Page 9 of 14Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started