Question No 1: Al Muttrah Group began their operation on 1st January 2010. Following details are related to their operations for the period of Jan 1st 2015 till Dec 31st 2015. Omani Rials Direct Material Cost per unit 8 Direct Labor Cost per unit Variable Manufacturing Cost per unit 3 Fixed Manufacturing Cost (Capacity 400 units) 4,000 Variable Selling Expenses 5 % of Sales Revenue. Fixed Selling Expenses 4,000 Fixed Admin Expenses 2,000 Group manufactured 500 units during its first year of operation and could sell only 300 units each at Omani Rials 50. There was no opening inventory at the start of the year. Required: 1. Calculate Cost per unit under Marginal and Absorption Costing Assumption. 2. Prepare Statement of Profit & Loss under Marginal Costing Assumption 3. Prepare Statement of Profit & Loss under Absorption Costing Assumption.

Question No 1: Al Muttrah Group began their operation on 1st January 2010. Following details are related to their operations for the period of Jan 1st 2015 till Dec 31st 2015. Omani Rials Direct Material Cost per unit 8 Direct Labor Cost per unit Variable Manufacturing Cost per unit 3 Fixed Manufacturing Cost (Capacity 400 units) 4,000 Variable Selling Expenses 5 % of Sales Revenue. Fixed Selling Expenses 4,000 Fixed Admin Expenses 2,000 Group manufactured 500 units during its first year of operation and could sell only 300 units each at Omani Rials 50. There was no opening inventory at the start of the year. Required: 1. Calculate Cost per unit under Marginal and Absorption Costing Assumption. 2. Prepare Statement of Profit & Loss under Marginal Costing Assumption 3. Prepare Statement of Profit & Loss under Absorption Costing Assumption.

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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