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Marginal and Absorption Costing   Unit Sales      15,000 Production      14,000 Finished goods - Opening         3,000 Finished goods - Ending      ?        Rs Selling price per unit              55 Cost per unit   Material per unit               15 Labour per unit               12 FOH - Variable per unit                 3 Salesman commisson per unit                 2 Advertisement on facebook 1     Fixed Cost   FOH      28,000 Rent of retail outlet      22,000 Gift to loyal customer 5,000 Required: Prepare income statement Marginal Costing Absorption Costing Reconcile the profit

Marginal and Absorption Costing   Unit Sales      15,000 Production      14,000 Finished goods - Opening         3,000 Finished goods - Ending      ?        Rs Selling price per unit              55 Cost per unit   Material per unit               15 Labour per unit               12 FOH - Variable per unit                 3 Salesman commisson per unit                 2 Advertisement on facebook 1     Fixed Cost   FOH      28,000 Rent of retail outlet      22,000 Gift to loyal customer 5,000 Required: Prepare income statement Marginal Costing Absorption Costing Reconcile the profit

FINANCIAL ACCOUNTING
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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Marginal and Absorption Costing

 

Unit

Sales

     15,000

Production

     14,000

Finished goods - Opening

        3,000

Finished goods - Ending

     ?
   
 

 Rs

Selling price per unit

             55

Cost per unit

  

Material per unit

              15

Labour per unit

              12

FOH - Variable per unit

                3

Salesman commisson per unit

                2

Advertisement on facebook

1
   

Fixed Cost

  

FOH

     28,000

Rent of retail outlet

     22,000

Gift to loyal customer

5,000

Required:

  • Prepare income statement
    • Marginal Costing
    • Absorption Costing
  • Reconcile the profit
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