b) Production and sales data of Industrial Detergents Ltd are given below: Production (liters) 70,000 Sales (liters) 55,000 nC udgeted financial data for activity level of 60,000 liters per period are as follOwS: Direct materials Cost per liter (¢) Direct labor 2. S0 3.00 Production overhead (200% of direct labor) 6.00 Total cost per liter 11.50 Selling price per liter 18.00 Administrative overheads are fixed at ¢100,000 per period and half of the production overheads are fixed. From the above information, prepare operating statements using marginal and absorplon principles.
b) Production and sales data of Industrial Detergents Ltd are given below: Production (liters) 70,000 Sales (liters) 55,000 nC udgeted financial data for activity level of 60,000 liters per period are as follOwS: Direct materials Cost per liter (¢) Direct labor 2. S0 3.00 Production overhead (200% of direct labor) 6.00 Total cost per liter 11.50 Selling price per liter 18.00 Administrative overheads are fixed at ¢100,000 per period and half of the production overheads are fixed. From the above information, prepare operating statements using marginal and absorplon principles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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b) Production and sales data of Industrial Detergents Ltd are given below:
Production (liters) 70,000 Sales (liters) 55,000
nC udgeted financial data for activity level of 60,000 liters per period are as follOwS: Direct materials Cost per liter (¢) Direct labor 2. S0
3.00
Production overhead (200% of direct labor) 6.00 Total cost per liter 11.50 Selling price per liter 18.00
Administrative
overheads are fixed.
From the above information, prepare operating statements using marginal and absorplon principles.
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