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Saunders manufactures a single product, details of which are as follows. per unit $ selling price 1500 direct materials 400 direct labour 200 variables overheads
Saunders manufactures a single product, details of which are as follows.
per unit | $ |
selling price | 1500 |
direct materials | 400 |
direct labour | 200 |
variables overheads | 150 |
Annual fixed production overheads are budgeted to be $4 million and Saunders expects to produce 80,000 units of Bark each year. Overheads are absorbed on a per unit basis. Budgeted fixed selling costs are $1,520,000 per quarter.
Actual stock data for quarter of 2020 are given below.
January -March | April-June | |
Sales | 20000 | 23000 |
Production | 22000 | 17000 |
opening Stock | 5000 | 7000 |
Required-
- Calculate closing stock.
- Prepare a Marginal Costing Statement for both quarters.
- Prepare an Absorption Costing Statement for both quarters.
- Reconcile profit figures from both statements.
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