QUESTION 4Mable PLC has the following data for November and December 2007.Basic production standard cost and selling price per unit of product is:Direct MaterialDirect LabourVariable overheadFixed overhead (based on K1,500,000 and 150,000 units of normal activity)Total standard costUnit selling priceOther expenses:Fixed selling and administration overhead:Sales commission:Output and sales in unitsOpening inventoryProductionSales(i)(ii) Marginal costingTotal absorption costingQUESTION 55% of sales valueNovemberNilDirect Material ADirect Material BDirect Labour:K13152Per Unit1.2 kgs at K11 per kg4.7 kg at K6 per Kg10170,000140,000Closing inventory30,000Actual fixed production overheads for each month were the same as the budgeted amount.Required(a) Prepare a profit statement for each of the two months of November and December 2007using:40K50K650,000December(b) Prepare a reconciliation of the differences in net profit reported under the two systems foreach of the two months.30,000140,000160,00010,000Jamlee Investment Ltd is planning to make 120,000 units per period of a new product. The followingstandards have been set:

An income statement is a financial report that indicates the revenue and expenses of a business. It…

QUESTION 4 Mable PLC has the following data for November and December 2007. Basic production standard cost and selling price per unit of product is: Direct Material Direct Labour Variable overhead Fixed overhead (based on K1,500,000 and 150,000 units of normal activity) Total standard cost Unit selling price Other expenses: Fixed selling and administration overhead: Sales commission: Output and sales in units. Opening inventory Production Total absorption costing (i) (ii) Marginal costing 5% of sales value November Nil K 13 15 2 10 40 K50 K650,000 December 170,000 Sales 140,000 Closing inventory 30,000 Actual fixed production overheads for each month were the same as the budgeted amount. Required (a) Prepare a profit statement for each of the two months of November and December 2007 using: 30,000 140,000 160,000 10,000 (b) Prepare a reconciliation of the differences in net profit reported under the two systems for each of the two months.

QUESTION 4 Mable PLC has the following data for November and December 2007. Basic production standard cost and selling price per unit of product is: Direct Material Direct Labour Variable overhead Fixed overhead (based on K1,500,000 and 150,000 units of normal activity) Total standard cost Unit selling price Other expenses: Fixed selling and administration overhead: Sales commission: Output and sales in units. Opening inventory Production Total absorption costing (i) (ii) Marginal costing 5% of sales value November Nil K 13 15 2 10 40 K50 K650,000 December 170,000 Sales 140,000 Closing inventory 30,000 Actual fixed production overheads for each month were the same as the budgeted amount. Required (a) Prepare a profit statement for each of the two months of November and December 2007 using: 30,000 140,000 160,000 10,000 (b) Prepare a reconciliation of the differences in net profit reported under the two systems for each of the two months.

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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