Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following methods: 2.1 Absorption costing 2.2 Variable costing INFORMATION The following information was extracted from the accounting records of Abbey Limited for the month ended 31 March 2023: Inventory on 01 March 2023 Production Sales Selling price per unit Nil 50 000 units 40 000 units R200
Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following methods: 2.1 Absorption costing 2.2 Variable costing INFORMATION The following information was extracted from the accounting records of Abbey Limited for the month ended 31 March 2023: Inventory on 01 March 2023 Production Sales Selling price per unit Nil 50 000 units 40 000 units R200
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...
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![REQUIRED
Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following
methods:
2.1 Absorption costing
2.2 Variable costing
INFORMATION
The following information was extracted from the accounting records of Abbey Limited for the month ended 31
March 2023:
Inventory on 01 March 2023
Production
Sales
Selling price per unit
Manufacturing costs:
Fixed manufacturing overheads costs
Direct materials cost per unit
Direct labour cost per unit
Variable manufacturing overheads costs per unit
Marketing costs:
Advertising
Sales personnel's salaries and commission
Delivery costs
Administration costs:
Salaries
Other office costs
Nil
50 000 units
40 000 units
R200
R480 000
R40
R24
R16
R32 000 per month
R36 000 per month plus 5% of sales
R24 per unit sold
R80 000 per month
R32 000 per month plus R16 per unit sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd84f55b1-6045-46a9-9610-9a34a878a241%2F69387ff0-a52c-4c9b-a1b2-aa061eb9d04e%2F0trmrsp.png&w=3840&q=75)
Transcribed Image Text:REQUIRED
Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following
methods:
2.1 Absorption costing
2.2 Variable costing
INFORMATION
The following information was extracted from the accounting records of Abbey Limited for the month ended 31
March 2023:
Inventory on 01 March 2023
Production
Sales
Selling price per unit
Manufacturing costs:
Fixed manufacturing overheads costs
Direct materials cost per unit
Direct labour cost per unit
Variable manufacturing overheads costs per unit
Marketing costs:
Advertising
Sales personnel's salaries and commission
Delivery costs
Administration costs:
Salaries
Other office costs
Nil
50 000 units
40 000 units
R200
R480 000
R40
R24
R16
R32 000 per month
R36 000 per month plus 5% of sales
R24 per unit sold
R80 000 per month
R32 000 per month plus R16 per unit sold
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