Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of product per annum at a selling price of £10 per litre. Citricacid’s budgeted costs are as follows: £ per unit Variable production costs 3.54 Fixed production costs 1.04 Variable selling costs 2.50 In the first year the unit selling price was £10 per litre and the variable unit cost and expenditure on fixed production costs were also as budgeted. Actual sales volume was 38,400 litres and closing inventory was 960 litres. Using absorption costing Citricacid’s profit for the year was: a)  £113,376 b)  £112,378 c)  £112,128 d)  £110,880

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of product per annum at a selling price of £10 per litre.

Citricacid’s budgeted costs are as follows:

£ per unit Variable production costs 3.54 Fixed production costs 1.04 Variable selling costs 2.50

In the first year the unit selling price was £10 per litre and the variable unit cost and expenditure on fixed production costs were also as budgeted. Actual sales volume was 38,400 litres and closing inventory was 960 litres.

Using absorption costing Citricacid’s profit for the year was:

  1. a)  £113,376

  2. b)  £112,378

  3. c)  £112,128

  4. d)  £110,880

23. Citricacid plc budgets during its first year of operations to produce and
sell 38,160 litres of product per annum at a selling price of £10 per litre.
Citricacid's budgeted costs are as follows:
Variable production costs
Fixed production costs
Variable selling costs
£ per unit
3.54
1.04
2.50
In the first year the unit selling price was £10 per litre and the variable unit
cost and expenditure on fixed production costs were also as budgeted. Actual
sales volume was 38,400 litres and closing inventory was 960 litres.
Using absorption costing Citricacid's profit for the year was:
£113,376
£112,378
£112,128
£110,880
а)
b)
d)
Transcribed Image Text:23. Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of product per annum at a selling price of £10 per litre. Citricacid's budgeted costs are as follows: Variable production costs Fixed production costs Variable selling costs £ per unit 3.54 1.04 2.50 In the first year the unit selling price was £10 per litre and the variable unit cost and expenditure on fixed production costs were also as budgeted. Actual sales volume was 38,400 litres and closing inventory was 960 litres. Using absorption costing Citricacid's profit for the year was: £113,376 £112,378 £112,128 £110,880 а) b) d)
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