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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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