Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plx help my cost accounting The following information is available for years 1 to 6 for the Sunshine Company: The company produces only one product.

plx help my cost accounting image text in transcribed
The following information is available for years 1 to 6 for the Sunshine Company: The company produces only one product. Budgeted activity is expected to average 150,000 units per annum and production and sales for each year are as follows: There were no opening stocks at the start of year 1 , and the actual fixed manufacturing costs incurred was $300,000 per annum. It is also noted that selling and administrative expenses are $100,000 per annum. Allocation based for fixed manufacturing costs is on 150,000 units. Required: a. Construct an income statement under absorption costing method for years 1 to 6. (48 marks) b. Derive the Sunshine's operating income under variable costing method by using RECONCILIATION for each of its six years of operation. (12 marks) c. Comment on the results of part a \& b for the year 2 and 6 . (10 marks) The following information is available for years 1 to 6 for the Sunshine Company: The company produces only one product. Budgeted activity is expected to average 150,000 units per annum and production and sales for each year are as follows: There were no opening stocks at the start of year 1 , and the actual fixed manufacturing costs incurred was $300,000 per annum. It is also noted that selling and administrative expenses are $100,000 per annum. Allocation based for fixed manufacturing costs is on 150,000 units. Required: a. Construct an income statement under absorption costing method for years 1 to 6. (48 marks) b. Derive the Sunshine's operating income under variable costing method by using RECONCILIATION for each of its six years of operation. (12 marks) c. Comment on the results of part a \& b for the year 2 and 6 . (10 marks)

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

Fundamentals Of Quality Auditing

Authors: B. Scott Parsowith

1st Edition

0873892402, 978-0873892407

More Books

Students also viewed these Accounting questions