INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units R Sales for the year 3 500 ? 3 700 666 000 Selling price per unit 200 180 Production for the year 4 100 4 000 Finished goods at beginning of year Nil Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO method for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.

INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units R Sales for the year 3 500 ? 3 700 666 000 Selling price per unit 200 180 Production for the year 4 100 4 000 Finished goods at beginning of year Nil Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO method for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 5PA: Statement of cost of goods manufactured and income statement for a manufacturing company The...

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Question

Prepare an income statement of Mary's manufacturers the year ended 31 December using the:

1. Marginal costing method.

2. Absorption costing method.

INFORMATION
The following information was extracted from the accounting records of Mary's Manufacturers for the years
ended 31 December 2020 and 31 December 2019:
31 December 2020
31 December 2019
Units
R
Units
R
Sales for the year
3 500
3 700
666 000
Selling price per unit
200
180
Production for the year
4 100
4 000
Finished goods at beginning of year
?
Nil
Variable manufacturing costs per unit
50
45
Variable selling and administrative costs per unit
25
24
Fixed manufacturing costs per year
45 100
36 000
Fixed selling and administrative costs per year
24 000
25 000
Additional information
1.
Mary's Manufacturers uses the FIFO method for the valuation of inventory.
2.
The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.

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