SECTION A Answer ALL the questions in this section. QUESTION ONE INFORMATION: The following information was extracted from the accounting records of Leeds Limited for the month ended 30 April 2021: INFORMATION There is no inventory on hand at the beginning of the month of April for Leeds Limited. The total expected production and sales are 75 000 units and 70 000 units respectively. The selling price per unit is R12. The company's expenses can be broken down as follows: DO 4 F0O
SECTION A Answer ALL the questions in this section. QUESTION ONE INFORMATION: The following information was extracted from the accounting records of Leeds Limited for the month ended 30 April 2021: INFORMATION There is no inventory on hand at the beginning of the month of April for Leeds Limited. The total expected production and sales are 75 000 units and 70 000 units respectively. The selling price per unit is R12. The company's expenses can be broken down as follows: DO 4 F0O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:SECTION A
Answer ALL the questions in this section.
QUESTION ONE
INFORMATION:
The following information was extracted from the accounting records of Leeds Limited for the month ended 30 April 2021:
INFORMATION
There is no inventory on hand at the beginning of the month of April for Leeds Limited. The total expected production and
sales are 75 000 units and 70 000 units respectively. The selling price per unit is R12. The company's expenses can be
broken 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, and
Variable 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 2021
using:
1.1
The Absorption costing method
1.2
The Marginal costing method
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