QUESTION 2 ABC Sdn Bhd is producing a product called BB. Below are the cost information provided by Manager of BB production. Selling price RM 30.00 Direct material RM 2.80 Direct labour RM 8.00 Variable manufacturing overhead RM 1.20 Variable non-manufacturing overhead RM 0.80 Fixed production overhead (per production unit) RM 3.50 Fixed administration and general overhead RM 12,200 Fixed selling and distribution overhead RM 4,100 Production 5,000 units Sales 5,200 units Closing stock 500 units Opening stock 700 units Required: A) Prepare the Income Statement of ABC Enterprise for the second half year 2020 using Marginal Costing. B) Prepare the Income Statement of ABC Enterprise for the second half year 2020 using Absorption Costing. C) Prepare the reconciliation for the difference in the profits under the two costing approaches.
QUESTION 2
ABC Sdn Bhd is producing a product called BB. Below are the cost information provided by Manager of BB production.
|
Selling price |
RM 30.00 |
|
Direct material |
RM 2.80 |
|
Direct labour |
RM 8.00 |
|
Variable manufacturing |
RM 1.20 |
|
Variable non-manufacturing overhead |
RM 0.80 |
|
Fixed production overhead (per production unit) |
RM 3.50 |
|
Fixed administration and general overhead |
RM 12,200 |
|
Fixed selling and distribution overhead |
RM 4,100 |
|
Production |
5,000 units |
|
Sales |
5,200 units |
|
Closing stock |
500 units |
|
Opening stock |
700 units |
Required:
A) Prepare the Income Statement of ABC Enterprise for the second half year 2020 using Marginal Costing.
B) Prepare the Income Statement of ABC Enterprise for the second half year 2020 using Absorption Costing.
C) Prepare the reconciliation for the difference in the profits under the two costing approaches.
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