2.2 Man City Enterprises commenced operations on 1 January 2022, and produces a single product that sells for R36 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-inprocess inventory at the end of the year. All costs are presented in the table below: Cost type Direct materials Direct labour Factory overhead Marketing and administrative Fixed R600 000 R300 000 Variable R6.00 per unit produced R4.00 per unit produced R2.00 per unit produced R1.00 per unit sold Required: Prepare the income statement using the Marginal Costing method for the year ended 31 December 2022. (10)

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2.2
Man City Enterprises commenced operations on 1 January 2022, and produces a single product that sells
for R36 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units
were sold. There was no work-inprocess inventory at the end of the year. All costs are presented in the
table below:
Cost type
Direct materials
Direct labour
Factory overhead
Marketing and administrative
Fixed
R600 000
R300 000
Variable
R6.00 per unit produced
R4.00 per unit produced
R2.00 per unit produced
R1.00 per unit sold
Required:
Prepare the income statement using the Marginal Costing method for the year ended 31 December 2022.
(10)
Transcribed Image Text:2.2 Man City Enterprises commenced operations on 1 January 2022, and produces a single product that sells for R36 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-inprocess inventory at the end of the year. All costs are presented in the table below: Cost type Direct materials Direct labour Factory overhead Marketing and administrative Fixed R600 000 R300 000 Variable R6.00 per unit produced R4.00 per unit produced R2.00 per unit produced R1.00 per unit sold Required: Prepare the income statement using the Marginal Costing method for the year ended 31 December 2022. (10)
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