Solo Limited Normal activity is 500 units, and production and sales for the four periods are as follows: The following data relates to periods 1 to 4. RM Variable cost per unit 30 Selling price per unit 55 Fixed cost per period 6,000 Period 1 Period 2 Period 3 Period 4 units units units units Sales 500 400 550 450 Production 500 500 450 500 There were no opening stocks at the start of Period 1. Required: 1 Prepare operating statements for each of the periods 1 to 4, based on marginal costing principles. b. Prepare operating statements for each of the periods 1 to 4, based on absorption costing principles. Comment briefly on the results obtained in each period and in total by the two systems. (CIMA, Stage I)

Solo Limited Normal activity is 500 units, and production and sales for the four periods are as follows: The following data relates to periods 1 to 4. RM Variable cost per unit 30 Selling price per unit 55 Fixed cost per period 6,000 Period 1 Period 2 Period 3 Period 4 units units units units Sales 500 400 550 450 Production 500 500 450 500 There were no opening stocks at the start of Period 1. Required: 1 Prepare operating statements for each of the periods 1 to 4, based on marginal costing principles. b. Prepare operating statements for each of the periods 1 to 4, based on absorption costing principles. Comment briefly on the results obtained in each period and in total by the two systems. (CIMA, Stage I)

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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