During the most recent year, Papasab Company had the following data: [Pada tahun terakhir, Syarikat Papasab mempunyai data berikut:] Table 7: Production Costs [Jadual 7: Kos-kos Pengeluaran] Details Chocolate Cake 20,000 10,300 RM 40.00 Units produced Units sold (RM40 per unit) Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Selling expense Fixed costs: Fixed overhead per unit produced Fixed selling and administrative 10.00 7.00 4.00 5.00 135,000 Butter Cake 40,000 38,700 RM 35.00 10.95 3.75 2.65 2.00 2.50 275,500
During the most recent year, Papasab Company had the following data: [Pada tahun terakhir, Syarikat Papasab mempunyai data berikut:] Table 7: Production Costs [Jadual 7: Kos-kos Pengeluaran] Details Chocolate Cake 20,000 10,300 RM 40.00 Units produced Units sold (RM40 per unit) Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Selling expense Fixed costs: Fixed overhead per unit produced Fixed selling and administrative 10.00 7.00 4.00 5.00 135,000 Butter Cake 40,000 38,700 RM 35.00 10.95 3.75 2.65 2.00 2.50 275,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required:
i) Calculate the unit cost for the chocolate cake and butter cake using the variable costing method and absorption costing method.
ii) Solve operating income using variable costing.
ii) Solve operating income using absorption costing.
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