Solve this question please Q. No. 3ABSORPTION AND DIRECT COSTINGIqbal Manufacturing Co. uses direct costing. Following information have been obtained from theiraccounting records for a single product at the end of the year:Planned Production in units30,000Actual Production in units29,000Actual sales in units28,000Fixed Costs (Rs.)Per unit VariableCosts (Rs.)Raw Materials52Direct Labor40Variable FOH28Rs. 159,500Rs. 500,000Fixed FOH - CostMarketing and Administrative CostingNote: Selling price of each single unit is Rs. 200.RequiredPrepare operating income statement under Absorption Costing Approach.

Absorption Costing is costing in which value of closing stock is calculated on the basis of variable…

Q. No. 3 ABSORPTION AND DIRECT COSTING Iqbal Manufacturing Co. uses direct costing. Following information have been obtained from their accounting records for a single product at the end of the year: Planned Production in units | Actual Production in units Actual sales in units 30,000 29,000 28,000 Fixed Costs (Rs.) Per unit Variable Costs (Rs.) Raw Materials Direct Labor 52 40 Variable FOH Fixed FOH - Cost Marketing and Administrative Costing 28 Rs. 159,500 Rs. 500,000 Note: Selling price of each single unit is Rs. 200. Required Prepare operating income statement under Absorption Costing Approach.

Q. No. 3 ABSORPTION AND DIRECT COSTING Iqbal Manufacturing Co. uses direct costing. Following information have been obtained from their accounting records for a single product at the end of the year: Planned Production in units | Actual Production in units Actual sales in units 30,000 29,000 28,000 Fixed Costs (Rs.) Per unit Variable Costs (Rs.) Raw Materials Direct Labor 52 40 Variable FOH Fixed FOH - Cost Marketing and Administrative Costing 28 Rs. 159,500 Rs. 500,000 Note: Selling price of each single unit is Rs. 200. Required Prepare operating income statement under Absorption 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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Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct labor-hour Required: 1. Compute the predetermined overhead rate. 2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job: Direct materials Direct labor cost Direct labor-hours used $ 626 $ 292 4 12,000 $ 114,000 $ 1.00 Compute Mr.…
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