Question
QUESTION 2 (20 MARKS) REQUIRED Use the information provided below to prepare the Income Statement of Revlon Enterprises for the year ended 31 December 2022
| QUESTION 2 | (20 MARKS) |
| |||
| REQUIRED |
| ||||
| Use the information provided below to prepare the Income Statement of Revlon Enterprises for the year ended 31 December 2022 using the following methods: |
| ||||
| 2.1 | Marginal costing | (11 marks) |
| ||
| 2.2 | Absorption costing | (9 marks) |
| ||
| INFORMATION | |||||
| The following information relates to the only product produced by Revlon Enterprises during 2022: | |||||
| Opening inventory | Nil |
| |||
| Number of units manufactured | 5 000 |
| |||
| Number of units sold | 4 500 |
| |||
| Selling price per unit | R200 |
| |||
| Direct material cost per unit | R14 |
| |||
| Direct labour cost per unit | R23 |
| |||
| Variable manufacturing overheads cost per unit | R12 |
| |||
| Variable selling and administrative cost per unit sold | R3 |
| |||
| Fixed manufacturing overhead cost | R200 000 |
| |||
| Fixed selling and administrative costs | R400 000 | | |||
Step 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
Auditing Basics
Authors: 3G E-Learning
1st Edition
1984624261, 978-1984624260
