SECTION AAnswer ALL the questions in this section.QUESTION ONEINFORMATION:The following information was extracted from the accounting records of Leeds Limited for the month ended 30 April 2021:INFORMATIONThere is no inventory on hand at the beginning of the month of April for Leeds Limited. The total expected production andsales are 75 000 units and 70 000 units respectively. The selling price per unit is R12. The company's expenses can bebroken down as follows:fixed manufacturing cost is R34 500,Variable manufacturing cost per unit is R3.30,Bixed sales and administration costs are R32 000, andVariable sales and administration costs are R1.45.Leeds limited uses the First-In-First out method of inventory evaluation.REQUIRED:Using the information provided above, prepare the Income statement of Leeds Limited for the month ended 30 April 2021using:1.1The Absorption costing method1.2The Marginal costing method

The income statement is one of the financial statements of the business.

Answered: SECTION A Answer ALL the questions in…

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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