QUESTION TWoHendry Limited produces a mini-kitchen called Town Cook, which isenjoying extensive popularity amongst young children.The following data is available for the month:N$116,00Selling price (per unit)Units in opening inventory600Units manufactured2550Units sold3050Units in closing inventoryVariable cost per unit:100N$12,00N$50,00N$6,50N$10,00Direct materialsDirect labourVariable manufacturing overheadVariable selling and administrativeFixed costs:N$81 000,00N$19 000,00Fixed manufacturing overheadFixed selling and administrativeThe company produces the same number of units every month,although the sales in units vary from month to month. The company'svariable costs per unit and total fixed costs have been constant frommonth to month.(where applicable, round off amounts to two decimal places)2.3 Prepare an income statement for the month using the absorptioncosting method.

In Absorption Costing we consider both variable and fixed…

Answered: Hendry LImited produces a I-Kitchen…

Business

Accounting

Hendry LImited produces a I-Kitchen called Town Cook, which is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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