Question
Question 2 Henry limited produces a mini-kitchen called town cook, which is enjoying extensive popularity amongst young children. The following data is available for the
Question 2 Henry limited produces a mini-kitchen called town cook, which is enjoying extensive popularity amongst young children. The following data is available for the month :
Selling price 116r Units in opening inventory 600 Units manufactured 2550 Units sold 3050 Units in closing inventory 100 VARIABLE 1 700 COST PER UNIT Direct materials 12.00r Direct labour 50.00r Variable manufacturing overhead 6.50r Variable selling and administrative 10.00r FIXED COSTS Fixed manufacturing overhead 81 000r Fixed selling and administrative 19 000r The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month 2.1 calculate the unit product cost for the month under marginal costing 2.2 calculate the unit product cost for the month under absorption costing 2.3 prepare an income statement for the month using the absorption costing method. 2.4 prepare an income statement for the month using the marginal costing method.
Units in opening inventory Units manufactured Units sold Units in closing inventory ariable costs per unit: Direct materials Direct labour ariable manufacturing overhead 25 50 ariable selling and administrative ced costs: ked manufacturing overhead ced selling and administrative mpany produces the same number of units every month, although the sales in units vary from month to my's variable costs per unit and total fixed costs have been constant from month to month. applicable, round off amounts to two decimal places) Calculate the unit product cost for the month under marginal costing. Calculate the unit product cost for the month under absorption costing Prepare an income statement for the month using the absorption costing method. Prepare an income statement for the month using the Marginal costing methodStep by Step Solution
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