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Can you please help me prepare an income statement according to the absorption coating method.

Can you please help me prepare an income statement according to the absorption coating method.

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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Can you please help me prepare an income statement according to the absorption coating method.

 

please use the formulated table on picture 2

2.2 INFORMATION The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31 March 2022: 2.2.1 2.2.2 2.2.3 2.2.4 Sales Selling price per unit H Finished products on 01 March 2022 Products manufactured during the month Variable manufacturing costs per unit Variable selling and administrative costs per unit sold Fixed manufacturing costs Fixed selling and administrative costs Additional information 3 200 units Labour efficiency variance Variable overheads efficiency variance Variable overheads expenditure variance R100 INFORMATION 400 units 3 600 units R.26 R12 R25 200 The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March 2022 was R21.60 and R26.20 respectively. R12 400 Use the information provided below to calculate the following manufacturing variances for March 2022. Note: Each answer must state whether the variance is favourable or unfavourable. Labour rate variance Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 per labour hour. Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurred was R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
Transcribed Image Text:2.2 INFORMATION The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31 March 2022: 2.2.1 2.2.2 2.2.3 2.2.4 Sales Selling price per unit H Finished products on 01 March 2022 Products manufactured during the month Variable manufacturing costs per unit Variable selling and administrative costs per unit sold Fixed manufacturing costs Fixed selling and administrative costs Additional information 3 200 units Labour efficiency variance Variable overheads efficiency variance Variable overheads expenditure variance R100 INFORMATION 400 units 3 600 units R.26 R12 R25 200 The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March 2022 was R21.60 and R26.20 respectively. R12 400 Use the information provided below to calculate the following manufacturing variances for March 2022. Note: Each answer must state whether the variance is favourable or unfavourable. Labour rate variance Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 per labour hour. Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurred was R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
MIL HOME DIRE Sales (3200 x 100) Manufacturing cost of sales Opening Inventory Fixed manufacturing cost Variable manufacturing cost Goods available for sale (200 Less: Closing inventory Gross profit Other costs Fixed selling and administrative cost Variable selling and administrative cost Net profit Hit MHESHE ME 2 100 100 100 100 1 (If any) 320 000
Transcribed Image Text:MIL HOME DIRE Sales (3200 x 100) Manufacturing cost of sales Opening Inventory Fixed manufacturing cost Variable manufacturing cost Goods available for sale (200 Less: Closing inventory Gross profit Other costs Fixed selling and administrative cost Variable selling and administrative cost Net profit Hit MHESHE ME 2 100 100 100 100 1 (If any) 320 000
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