A clothing manufacturers makes a specific brand of jeans what it sells at a standard price of le 100 per pair. The manufacture cost are as follows: Standard variable production 16 per pair. Total fixed production cost per month le 240000( 10000 pairs are planned to be produced per month) Total fixed non production cost le300000 per month In month 1 when the opening inventory is 1000 pair production of 10000 is planned and sales of 8000 pair are expected. In month 2 sales are planned to be 9000 pairs and production is still 10000 Pairs Required What would be the profit for month 1 and 2 under Absorptions and marginal costing What comment would you make about the performance of the business
A clothing manufacturers makes a specific brand of jeans what it sells at a standard price of le 100 per pair. The
Standard variable production 16 per pair.
Total fixed production cost per month le 240000( 10000 pairs are planned to be produced per month)
Total fixed non production cost le300000 per month
In month 1 when the opening inventory is 1000 pair production of 10000 is planned and sales of 8000 pair are expected.
In month 2 sales are planned to be 9000 pairs and production is still 10000 Pairs
Required
What would be the profit for month 1 and 2 under
Absorptions and marginal costing
What comment would you make about the performance of the business
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