1.Ricardo Ltd makes doors with a selling price of £50 per door. Budgeted production and sales volume is 1,000 doors per month. During August 1,000 doors were made and 800 doors were sold. There was no opening inventory. The variable cost per door is £25. Fixed costs in August were, as budgeted, £5,000. Using absorption costing, what is the profit for August? £20,000 £16,000 £15,000 4. £10,000
1.Ricardo Ltd makes doors with a selling price of £50 per door. Budgeted production and sales volume is 1,000 doors per month. During August 1,000 doors were made and 800 doors were sold. There was no opening inventory. The variable cost per door is £25. Fixed costs in August were, as budgeted, £5,000. Using absorption costing, what is the profit for August? £20,000 £16,000 £15,000 4. £10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.Ricardo Ltd makes doors with a selling price of £50 per door. Budgeted production and sales volume is 1,000 doors per month. During August 1,000 doors were made and 800 doors were sold. There was no opening inventory.
The variable cost per door is £25. Fixed costs in August were, as budgeted, £5,000.
Using absorption costing, what is the profit for August?
- £20,000
- £16,000
- £15,000
4. £10,000
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