Ex.8: The following data were extracted from a records an industrial company in 31/12/2005: 1- Beginning finished goods inventory 500 units, Ending finished goods inventory 1000 units, Production volume 2500 units. 2- Variable cost per unit: - Direct manufacturing $50, Manufacturing overhead $25, Marketing $15. 3- Total fixed costs: - Manufacturing overhead $100000, Marketing $50000, Administrative $150000. 4- In the year 2006, the production will increase to became 3000 units, and the sales volume will be 3500 units at selling price $200 per unit. Required: - Prepare the costs & income statements according to the full & variable costing methods for the year 2006.
Ex.8: The following data were extracted from a records an industrial company in 31/12/2005: 1- Beginning finished goods inventory 500 units, Ending finished goods inventory 1000 units, Production volume 2500 units. 2- Variable cost per unit: - Direct manufacturing $50, Manufacturing overhead $25, Marketing $15. 3- Total fixed costs: - Manufacturing overhead $100000, Marketing $50000, Administrative $150000. 4- In the year 2006, the production will increase to became 3000 units, and the sales volume will be 3500 units at selling price $200 per unit. Required: - Prepare the costs & income statements according to the full & variable costing methods for the year 2006.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Costs accounting
Transcribed Image Text:Ex.8: The following data were extracted from a records an industrial
company in 31/12/2005:
1- Beginning finished goods inventory 500 units, Ending finished
goods inventory 1000 units, Production volume 2500 units.
2- Variable cost per unit: - Direct manufacturing $50, Manufacturing
overhead $25, Marketing $15.
3- Total fixed costs: - Manufacturing overhead $100000, Marketing
$50000, Administrative $150000.
4- In the year 2006, the production will increase to became 3000
units, and the sales volume will be 3500 units at selling price $200
per unit.
Required: - Prepare the costs & income statements according to the
full & variable costing methods for the year 2006.
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