Question 1: Pamlico Manufacturing Ltd has the following information given in the table below.12.50Sales per unitVariable production cost per unitVariable administration sales and distribution per7.501.00unitFixed production costs37 50018 750Fixed administration sales and distributionOpening inventory in unitsUnits produced2 50025 000At the beginning of December 2018, there were 2 500 units in inventory.Required:Draw up a staement of comprehensiy income according to margial costing principlesor threedifferenevels of sales, for the moth of December12 500 unitsb) 18 750 unitsc) 25 000 unitsQuestion 2Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensiveincome using absorption costing principles for the month of December and assume the following:1. Normal level of activity is 25 000 shirts per month.2. Fixed production costs were 37 500 for the month.

Income statement: Income statement has been drafted by a company to know about their profitability…

Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.

Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.

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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The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $ 750 $ 810 $ 890 $ 980 Accounts receivable at the beginning of the year are $335. The company has a 45-day collection period. Recalculate the cash collections with a collection period of 30 days. Q1 Q2 Q3 Q4 Beginning receivables Sales 750.00 810.00 890.00 980.00 Cash collections Ending receivables
Subject : Accounting
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