Homework Help is Here – Start Your Trial Now!
Business
Accounting
Moona Inc. produces Mobile phones. Information of the company's operations last year appear below:   Fixed cost:   Fixed Manufacturing overhead Rs     40,000 Fixed Selling & Administrative  Rs     60,000     Selling Price per unit Rs 100     Variable cost per unit:   Direct Materials Rs 30 Direct labor          Rs 10 Variable Manufacturing overhead Rs 5 Variable Selling & Administrative Rs 2     Units In beginning Inventory 0 Units Produced 2000 Units Sold 1900 a. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year

Moona Inc. produces Mobile phones. Information of the company's operations last year appear below:   Fixed cost:   Fixed Manufacturing overhead Rs     40,000 Fixed Selling & Administrative  Rs     60,000     Selling Price per unit Rs 100     Variable cost per unit:   Direct Materials Rs 30 Direct labor          Rs 10 Variable Manufacturing overhead Rs 5 Variable Selling & Administrative Rs 2     Units In beginning Inventory 0 Units Produced 2000 Units Sold 1900 a. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

Moona Inc. produces Mobile phones. Information of the company's operations last year appear below:

 

Fixed cost:

 

Fixed Manufacturing overhead

Rs     40,000

Fixed Selling & Administrative

 Rs     60,000

 

 

Selling Price per unit

Rs 100

 

 

Variable cost per unit:

 

Direct Materials

Rs 30

Direct labor

         Rs 10

Variable Manufacturing overhead

Rs 5

Variable Selling & Administrative

Rs 2

 

 

Units In beginning Inventory

0

Units Produced

2000

Units Sold

1900

a. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS