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please show calculations and answer all questions Question 1 A company manufactures and sells a single product X, the standard unit cost details of which
please show calculations and answer all questions
Question 1 A company manufactures and sells a single product X, the standard unit cost details of which are as follows: Direct Materials 3kgs at $2.5 per kg Direct Wages 2 hours at $2.5 per hour Variable Overhead $2.5 per labour hour The total fixed overhead is budgeted at $180.000 per month and is absorbed on a rate per unit basis. The budgeted output per month is 30,000 units, The product has a standard selling price of $30 per unit, and the number of units manufactured and sold for June and July were as follows: June July Units Units 20,000 30.000 Sales 15,000 32,000 Production Required: (a) Calculate the standard cost and profit for one unit of X (5 marks) (6) Prepare the income statements for each month, using Variable Costing (Marginal costing) ( Full costing ( Absorption costing) (16 marks) (c) Prepare a statement reconciling the marginal with the absorption profit for each month (4 marks) QUESTION 2 You are supplied with the following information Per unit: Sales price Direct material cost Direct wages Variable production overhead 30 7 2. 50 2 $ Per month Fixed production overhead Fixed selling overhead Fixed administration overhead Variable selling overhead 44000 7000 B000 10% of sales value Normal capacity (budgeted units) was 4400 units per month. January February (Units) (Units) Sales 4500 4000 Production 3500 4500 There was an opening stock of 1500 units on 1st January Required (a) Calculate the standard cost and profit for one unit of X (b) prepare a statement showing the profit for both January and February, using Marginal costing (6) Absorption costing (17 marks) (c) Prepare a statement reconciling the profits for each month as calculated in (b) above (4 marks) Step by Step Solution
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