Prepare the absorption costing and marginal costing income statements for Cecilia.com Ltd for Marchn
Cecilia.com Ltd commenced business on March 1 making one product only and the cost card is as follows;
Direct labour 5
Direct material 8
Variable production
Fixed production overhead 5
The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 36,000 units per annum. The fixed production overhead incurred in March was GH¢15,000.
Selling, distribution and administration expenses are:
Fixed GH¢10,000
Variable 15% of the sales value
The selling price per unit is GH¢35and the number of units produced and sold were;
Production 2,000
Sales 1,500
Required
Prepare the absorption costing and marginal costing income statements for Cecilia.com Ltd for Marchn
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