Question
The following information was extracted from the systems of Epandulo Limited, a manufacturing company producing one product, Star 200. Unit cost N$ Direct materials60 Direct
The following information was extracted from the systems of Epandulo Limited, a manufacturing company producing one product, Star 200.
Unit cost N$
Direct materials60
Direct labour (5 hours at $10/hour)50
Variable overheads (2 hours at $20 /hour)40
Fixed overheads120
Fixed Selling Expenses30
Total cost/unit300
In the last period, Epandulo Ltd produced 10,000 units of Star 200. Total sales amounted to 8,500 units at N$500 per unit. There was no opening inventory. Calculate the value of gross profit (absorption costing)
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
