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a) Please develop both marginal costing and absorption costing income statements. b) elaborate the findings, key advantages and limitations.

a) Please develop both marginal costing and absorption costing income statements. b) elaborate the findings, key advantages and limitations.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are working as a manager accountant for a retail company which markets and sells two products product 1 and product 2. The following information is available for last year. The actual fixed product overheads for the same period were 95000 and fixed administration overheads were 25000. a) Please develop both marginal costing and absorption costing income statements. b) elaborate the findings, key advantages and limitations. production sales operating inventory finantial data unit selling unit cost direct material direct labour Ĉ variable production overheads fixed prod overheads variable selling overheads Show Transcribed Text product 1 product 2 4000 2000 3900 2000 0 0 100 10 15 15 25 1 50 6 11 6 ܪ 1
Transcribed Image Text:You are working as a manager accountant for a retail company which markets and sells two products product 1 and product 2. The following information is available for last year. The actual fixed product overheads for the same period were 95000 and fixed administration overheads were 25000. a) Please develop both marginal costing and absorption costing income statements. b) elaborate the findings, key advantages and limitations. production sales operating inventory finantial data unit selling unit cost direct material direct labour Ĉ variable production overheads fixed prod overheads variable selling overheads Show Transcribed Text product 1 product 2 4000 2000 3900 2000 0 0 100 10 15 15 25 1 50 6 11 6 ܪ 1
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