Quality Company Limited is a leading producer of Trust-Me Bottled Water in Ghana. During the month of December, 2020, the following figures were extracted from their records. Selling price Direct material Direct labour Factory overhead (60% fixed) Selling and Distribution Cost (30% variable) Administrative cost (80% fixed) Opening Stock Units sold Units produced GHS 65.00 16.00 12.00 30,000.00 50,000.00 30,000.00 7,600.00 4000 bottles 5000 bottles You are required to prepare income statement for Quality Company Limited for the month of December, 2020 using absorption costing and marginal costing approaches With relevant examples, explain the following Primary appointment and secondary apportionment Direct cost and indirect cost
Quality Company Limited is a leading producer of Trust-Me Bottled Water in Ghana. During the month of December, 2020, the following figures were extracted from their records. Selling price Direct material Direct labour Factory overhead (60% fixed) Selling and Distribution Cost (30% variable) Administrative cost (80% fixed) Opening Stock Units sold Units produced GHS 65.00 16.00 12.00 30,000.00 50,000.00 30,000.00 7,600.00 4000 bottles 5000 bottles You are required to prepare income statement for Quality Company Limited for the month of December, 2020 using absorption costing and marginal costing approaches With relevant examples, explain the following Primary appointment and secondary apportionment Direct cost and indirect cost
Chapter1: Financial Statements And Business Decisions
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Quality Company Limited is a leading producer of Trust-Me Bottled Water in Ghana. During the month of December, 2020, the following figures were extracted from their records.
Selling price
Direct material
Direct labour
Factory overhead (60% fixed)
Selling and Distribution Cost (30% variable) Administrative cost (80% fixed)
Opening Stock Units sold Units produced
GHS
65.00 16.00 12.00
30,000.00 50,000.00 30,000.00 7,600.00
4000 bottles 5000 bottles
You are required to prepare income statement for Quality Company Limited for the month of December, 2020 using absorption costing and marginal costing approaches
With relevant examples, explain the following
Primary appointment and secondary apportionment
Direct cost and indirect cost
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