Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The information below relates to data concerning a company's operations in a year: II Units in beginning inventory 0 Units produced 10,000 Units sold. 9,000

image text in transcribed

The information below relates to data concerning a company's operations in a year: II Units in beginning inventory 0 Units produced 10,000 Units sold. 9,000 Selling price per unit RM60 Variable costs per unit: RMIS Direct materials. Direct labor..... RM5 Variable manufacturing overhead RM2 Variable selling and administrative. RM4 Fixed costs in total: Fixed manufacturing overhead.. RM200,000 Fixed selling and administrative RM70,000 Direct labour here is a variable cost. Required: (a) Prepare the statement of profit or loss for the year using absorption costing. (8 marks) (b)Prepare the statement of profit or loss for the year using variable costing. (8 marks) (c)The mooncake is a Chinese bakery product traditionally eaten during the Mid-Autumn Festival, celebrated on the eight month of the Chinese Lunar calendar. If you are the management accountant of a company producing mooncakes and other festive delicacies, explain the impact of sales and production cost of such a product on profits if (1) absorption costing, or (ii) variable costing is adopted, clearly proposing which costing system is most suitable here. (9 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

Management Audit A Complete Guide

Authors: Gerardus Blokdyk

2020 Edition

0655905413, 978-0655905417

More Books

Students also viewed these Accounting questions

Question

a valuing of personal and psychological privacy;

Answered: 1 week ago