olicoeur Ltd produces and markets a single product. Following budgeted information is available from the firm's records for the month of March and April 2022: March April Sales 100,000 units 105,000 units Production 120,000 units 110,000 units Standard costs: Direct materials per unit - 0.8 kg at Rs. 60 per kg Labour per unit - 27 minutes at Rs. 80 per hour Variable production overheads - Rs. 40 per labour hour Variable selling expenses - Rs. 15 per unit Fixed selling expenses Rs. 800,000 Fixed production overheads, at a normal output level of 105,000 units per month, are estimated at Rs. 2,100,000. The estimated selling price is Rs. 180 per unit. Actual fixed production overheads amounted to Rs 2,000,000 and Rs2,050,000 for the months of March and April respectively. Required: Assuming there are no opening stocks at the start of March, prepare the firm's profit and loss statement for the months of March and April 2022, using marginal costing and absorption costing.
olicoeur Ltd produces and markets a single product. Following budgeted information is available from the firm's records for the month of March and April 2022: March April Sales 100,000 units 105,000 units Production 120,000 units 110,000 units Standard costs: Direct materials per unit - 0.8 kg at Rs. 60 per kg Labour per unit - 27 minutes at Rs. 80 per hour Variable production overheads - Rs. 40 per labour hour Variable selling expenses - Rs. 15 per unit Fixed selling expenses Rs. 800,000 Fixed production overheads, at a normal output level of 105,000 units per month, are estimated at Rs. 2,100,000. The estimated selling price is Rs. 180 per unit. Actual fixed production overheads amounted to Rs 2,000,000 and Rs2,050,000 for the months of March and April respectively. Required: Assuming there are no opening stocks at the start of March, prepare the firm's profit and loss statement for the months of March and April 2022, using marginal costing and absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:olicoeur Ltd produces and markets a single product. Following budgeted information is available from the firm's records
for the month of March and April 2022: March April Sales 100,000 units 105,000 units Production 120,000 units 110,000
units Standard costs: Direct materials per unit - 0.8 kg at Rs. 60 per kg Labour per unit - 27 minutes at Rs. 80 per hour
Variable production overheads - Rs. 40 per labour hour Variable selling expenses - Rs. 15 per unit Fixed selling
expenses Rs. 800,000 Fixed production overheads, at a normal output level of 105,000 units per month, are estimated
at Rs. 2,100,000. The estimated selling price is Rs. 180 per unit. Actual fixed production overheads amounted to Rs
2,000,000 and Rs2,050,000 for the months of March and April respectively. Required: Assuming there are no opening
stocks at the start of March, prepare the firm's profit and loss statement for the months of March and April 2022, using
marginal costing and absorption costing.
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