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

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

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.

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

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