Boateng Plc is a company that produces and sells one product "Excellence". Information relating to the operations of George Plc for the first two months of 2023 are as follows: i) Excellence sells for GHC500 per unit. There were no inventories of Excellence at the end of December 2022. Other relevant information is as follows: Standard cost per unit of Excellence: Direct material and wages Variable production overhead GHC 220 30 Budgeted and actual costs per month: Fixed production overhead 990,000 Fixed selling and admin. expenses 400,000 Variable selling expenses 12.5% of sales Normal capacity 110,000 units per month Number of units produced and sold: January February Sales (units) 128,000 110,000 Production (units) 140,000 102,000 Required: Using the information above, prepare in a columnar form profit statements for January and February 2023 using: a) Marginal costing b) Absorption costing
Boateng Plc is a company that produces and sells one product "Excellence". Information relating to the operations of George Plc for the first two months of 2023 are as follows: i) Excellence sells for GHC500 per unit. There were no inventories of Excellence at the end of December 2022. Other relevant information is as follows: Standard cost per unit of Excellence: Direct material and wages Variable production overhead GHC 220 30 Budgeted and actual costs per month: Fixed production overhead 990,000 Fixed selling and admin. expenses 400,000 Variable selling expenses 12.5% of sales Normal capacity 110,000 units per month Number of units produced and sold: January February Sales (units) 128,000 110,000 Production (units) 140,000 102,000 Required: Using the information above, prepare in a columnar form profit statements for January and February 2023 using: a) Marginal costing b) Absorption costing
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
Related questions
Question
![Boateng Plc is a company that produces and sells one product "Excellence". Information
relating to the operations of George Plc for the first two months of 2023 are as follows:
i)
Excellence sells for GHC500 per unit.
There were no inventories of Excellence at the end of December 2022.
Other relevant information is as follows:
Standard cost per unit of Excellence:
Direct material and wages
Variable production overhead
GHC
220
30
Budgeted and actual costs per month:
Fixed production overhead
990,000
Fixed selling and admin. expenses
400,000
Variable selling expenses
12.5% of sales
Normal capacity 110,000 units per month
Number of units produced and sold:
January
February
Sales (units)
128,000
110,000
Production (units)
140,000
102,000
Required:
Using the information above, prepare in a columnar form profit statements for January and
February 2023 using:
a) Marginal costing
b) Absorption costing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2746a975-1dab-46b8-bfda-3796ae51a2eb%2F26aab35b-5cc5-4a0c-b5eb-d4a71a1ab6d9%2F4ptrzs9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Boateng Plc is a company that produces and sells one product "Excellence". Information
relating to the operations of George Plc for the first two months of 2023 are as follows:
i)
Excellence sells for GHC500 per unit.
There were no inventories of Excellence at the end of December 2022.
Other relevant information is as follows:
Standard cost per unit of Excellence:
Direct material and wages
Variable production overhead
GHC
220
30
Budgeted and actual costs per month:
Fixed production overhead
990,000
Fixed selling and admin. expenses
400,000
Variable selling expenses
12.5% of sales
Normal capacity 110,000 units per month
Number of units produced and sold:
January
February
Sales (units)
128,000
110,000
Production (units)
140,000
102,000
Required:
Using the information above, prepare in a columnar form profit statements for January and
February 2023 using:
a) Marginal costing
b) Absorption costing
AI-Generated Solution
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,