Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selling price (per unit) R 116 Units in opening inventory 600 Units manufactured 2 550 Units sold 3 050 Units in closing inventory 100 Variable

image text in transcribed

Selling price (per unit) R 116 Units in opening inventory 600 Units manufactured 2 550 Units sold 3 050 Units in closing inventory 100 Variable costs per unit Direct materials R12,00 Direct labour R50,00 Variable manufacturing overhead R6,50 Variable selling and administrative R10,00 Fixed costs: Fixed manufacturing overhead R81 000 Fixed selling and administrative R19 000 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. (where applicable, round off amounts to two decimal places) 2.1 (3 marks) Calculate the unit product cost for the month under marginal costing. Calculate the unit product cost for the month under absorption costing 2.2 (3 marks) 2.3 Prepare an income statement for the month using the absorption costing method. (7 marks) 2.4 Prepare an income statement for the month using the Marginal costing method. (7 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

Hong Kong Auditing Economic Theory And Practice

Authors: Simon Fung, Ferdinard A. Gul

3rd Edition

9629372347, 978-9629372347

More Books

Students also viewed these Accounting questions

Question

How does value added affect a store's competitive position?

Answered: 1 week ago