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:Selling price (per unit)Units in opening inventoryN$116,00600Units manufactured2550Units sold3050Units in closing inventory100Variable cost per unit:Direct materialsN$12,00N$50,00N$6,50N$10,00Direct labourVariable manufacturing overheadVariable selling and administrativeFixed costs:Fixed manufacturing overheadFixed selling and administrativeN$81 000,00N$19 000,00The 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)2.1 Calculate the unit product cost for the month under marginal costing.

Marginal Costing: Under Marginal costing, variable costs are charged to the product cost. And the…

Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children. The following data is available for the month: Selling price (per unit) Units in opening inventory N$116,00 600 Units manufactured 2550 Units sold 3050 Units in closing inventory Variable cost per unit: 100 Direct materials N$12,00 Direct labour N$50,00 Variable manufacturing overhead Variable selling and administrative N$6,50 N$10,00 Fixed costs: N$81 000,00 Fixed manufacturing overhead Fixed selling and administrative N$19 000,00 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing.

Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children. The following data is available for the month: Selling price (per unit) Units in opening inventory N$116,00 600 Units manufactured 2550 Units sold 3050 Units in closing inventory Variable cost per unit: 100 Direct materials N$12,00 Direct labour N$50,00 Variable manufacturing overhead Variable selling and administrative N$6,50 N$10,00 Fixed costs: N$81 000,00 Fixed manufacturing overhead Fixed selling and administrative N$19 000,00 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing.

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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