Question
The following data relate to Nizwa Manufacturing LLC for the year ended 30 June 2020: Cost of Production: Manufacturing Overhead - Variable RO 18,000 Manufacturing
The following data relate to Nizwa Manufacturing LLC for the year ended 30 June 2020: Cost of Production: Manufacturing Overhead - Variable RO 18,000 Manufacturing Overhead - Fixed RO 1,700 Sales Commission (Variable) RO 21,000 Sales Salaries (Fixed) RO 5,500 Direct Materials RO 15,000 Direct Labor RO 42,000 Direct Expenses RO 15,000 Administrative Expenses (Fixed) RO 2,800 Units Sold (@ RO 10) 42,000 Units Produced 50,000 Beginning Inventory: Nil Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing.
a. RO 422,880
b. RO 117,843
c. RO 301,880
d. RO 302,157
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