Question
The following data are available regarding an organization who makes a single product. Period 2 Production (units) 18,000 Sales 16,500 Opening Stock 1,000 Closing Stock
The following data are available regarding an organization who makes a single product.
| Period 2 | |
| Production (units) | 18,000 |
| Sales | 16,500 |
| Opening Stock | 1,000 |
| Closing Stock | 2,500 |
The following cost structure applies (based on a budgeted level of 17,000 units per period).
| Cost per unit | |
| $ | |
| Direct Material | 3.00 |
| Direct Labour | 7.00 |
| Production Overheads | 3.00 |
| 13.00 |
Selling price is $17 per unit
Administrative overheads are $15,000 per period and the budgeted production overheads are $51,000 per period of which $34,000 () are fixed.
What is the Absorption Costing Profit/Loss?
Select one:
A. $120,000
B. $84,000
C. $41,000
D. $51,000
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Accounting Principles Part 3
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306805, 978-1118306802
