Gates Manufacturing operations for 2021 are as follows: $ Per unit: Sales price 100 Direct material cost 36 Direct wages 8 Variable production overhead 6 Per month: Fixed production overhead 198 000 Fixed selling expenses 24 000 Fixed administration expenses 52 000 Variable selling expenses is 10% of sales value. Normal capacity was 11 000 units per month. January February Units Units Sales 20 000 24 000 Production 24 000 20 000 Using the two methods: C. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April
Gates Manufacturing operations for 2021 are as follows:
$
Per unit:
Sales price 100
Direct material cost 36
Direct wages 8
Variable production
Per month:
Fixed production overhead 198 000
Fixed selling expenses 24 000
Fixed administration expenses 52 000
Variable selling expenses is 10% of sales value.
Normal capacity was 11 000 units per month.
January February
Units Units
Sales 20 000 24 000
Production 24 000 20 000
Using the two methods:
C. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
