Question
The following information applies to questions A12 to A15. Selling price per unit is 30 Variable cost per unit is 15 Fixed costs of the
The following information applies to questions A12 to A15.
Selling price per unit is 30
Variable cost per unit is 15
Fixed costs of the period are 2,400
Normal level of production activity is 240 units
| Period 1 units | Period 2 units |
Produced | 280 | 240 |
Sold | 250 | 250 |
Held in stock at end of period | 30 | 20 |
A12 Using absorption costing, the value of closing stock at the end of period 1 is
- Nil
- 450
- 500
- 750
A13 Using marginal costing, the value of closing stock at the end of period 1 is
- Nil
- 450
- 500
- 750
Continued on next page \...
A14 Using absorption costing the profit of period 2 is
- 1,250
- 1,350
- 3,600
- 7,500
A15 Using marginal costing the profit of period 2 is
- 1,250
- 1,350
- 3,600
- 7,500
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