Prepare the Income statement of Cambridge Manufacturers for the year ended 31 March 2021 using the absorption costing method, INFORMATION The following information was extracted from the accounting records of Cambridge Manufacturers for the year ended 31 March 2021: Inventory on 01 April 2020 1 000 units Production for the year 30 000 units Sales for the year (at R240 per unit) 25 000 units Costs: Direct materials cost per unit R60 Direct labour cost per unit R36 Variable manufacturing overheads cost per unit R24 Variable selling and administrative costs per unit sold R12 Fixed manufacturing overhead cost R696 000 Fixed selling and administrative cost R303 200 Additional information The total manufacturing costs per unit for the year ended 31 March 2020 amounted to R130, comprising R110 for variable manufacturing costs and R20 for fixed manufacturing costs. The total selling and administrative costs per unit for the same period amounted to R10, The firs-in-first out method of inventory valuation is used.
Prepare the Income statement of Cambridge Manufacturers for the year ended 31 March 2021 using the absorption costing method, INFORMATION The following information was extracted from the accounting records of Cambridge Manufacturers for the year ended 31 March 2021: Inventory on 01 April 2020 1 000 units Production for the year 30 000 units Sales for the year (at R240 per unit) 25 000 units Costs: Direct materials cost per unit R60 Direct labour cost per unit R36 Variable manufacturing overheads cost per unit R24 Variable selling and administrative costs per unit sold R12 Fixed manufacturing overhead cost R696 000 Fixed selling and administrative cost R303 200 Additional information The total manufacturing costs per unit for the year ended 31 March 2020 amounted to R130, comprising R110 for variable manufacturing costs and R20 for fixed manufacturing costs. The total selling and administrative costs per unit for the same period amounted to R10, The firs-in-first out method of inventory valuation is used.
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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![Prepare the Income statement of Cambridge Manufacturers for the year ended 31 March 2021
using the absorption costing method,
INFORMATION
The following information was extracted from the accounting records of Cambridge Manufacturers for the year ended
31 March 2021:
Inventory on 01 April 2020
1 000 units
Production for the year
30 000 units
Sales for the year (at R240 per unit)
25 000 units
Costs:
Direct materials cost per unit
R60
Direct labour cost per unit
R36
Variable manufacturing overheads cost per unit
R24
Variable selling and administrative costs per unit sold
R12
Fixed manufacturing overhead cost
R696 000
Fixed selling and administrative cost
R303 200
Additional information
The total manufacturing costs per unit for the year ended 31 March 2020 amounted to R130, comprising R110
for variable manufacturing costs and R20 for fixed manufacturing costs. The total selling and administrative
costs per unit for the same period amounted to R10,
The firs-in-first out method of inventory valuation is used.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd332b1cc-d914-47cf-9a0c-b8b5c4fe3d8a%2Fdac2e65a-1d46-489c-92cd-84f0716c477a%2Foxil87g_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the Income statement of Cambridge Manufacturers for the year ended 31 March 2021
using the absorption costing method,
INFORMATION
The following information was extracted from the accounting records of Cambridge Manufacturers for the year ended
31 March 2021:
Inventory on 01 April 2020
1 000 units
Production for the year
30 000 units
Sales for the year (at R240 per unit)
25 000 units
Costs:
Direct materials cost per unit
R60
Direct labour cost per unit
R36
Variable manufacturing overheads cost per unit
R24
Variable selling and administrative costs per unit sold
R12
Fixed manufacturing overhead cost
R696 000
Fixed selling and administrative cost
R303 200
Additional information
The total manufacturing costs per unit for the year ended 31 March 2020 amounted to R130, comprising R110
for variable manufacturing costs and R20 for fixed manufacturing costs. The total selling and administrative
costs per unit for the same period amounted to R10,
The firs-in-first out method of inventory valuation is used.
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