Q # 7 Kabeer Manufacturing Co. uses direct costing. Following information have been received from their accounting records for a single product at the end of the year: Planned Production in units 30,000 29,000 Actual Production in units Actual sales in units 28,000 Fixed Costs (Rs.) Variable Costs (Rs.) Raw Materials 52 Direct Labor 40 FOH 28 Fixed FOH - Cost Rs. 160,000 Rs. 100,000 Marketing and Administrative Costing Rs. 9 per unit sold Note: Selling price of each single unit is Rs. 200. Required Prepare operating income statement by both, absorption and direct costing approach.
Q # 7 Kabeer Manufacturing Co. uses direct costing. Following information have been received from their accounting records for a single product at the end of the year: Planned Production in units 30,000 29,000 Actual Production in units Actual sales in units 28,000 Fixed Costs (Rs.) Variable Costs (Rs.) Raw Materials 52 Direct Labor 40 FOH 28 Fixed FOH - Cost Rs. 160,000 Rs. 100,000 Marketing and Administrative Costing Rs. 9 per unit sold Note: Selling price of each single unit is Rs. 200. Required Prepare operating income statement by both, absorption and direct costing approach.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Q # 7
Kabeer Manufacturing Co. uses direct costing. Following information have been received from their
accounting records for a single product at the end of the year:
Planned Production in units
30,000
29,000
Actual Production in units
Actual sales in units
28,000
Fixed Costs (Rs.)
Variable Costs (Rs.)
Raw Materials
52
Direct Labor
40
FOH
28
Fixed FOH - Cost
Marketing and Administrative Costing
Rs. 160,000
Rs. 100,000
Rs. 9 per unit sold
Note: Selling price of each single unit is Rs. 200.
Required
Prepare operating income statement by both, absorption and direct costing approach.
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