Sourk Enterprises released the figures given below from its records for the year land 2: Year 2 2,40,000 2,40,000 2,40,000 4,00,000 Year 1 Sales units Production units Selling price per unit ($) Variable manufacturing cost per unit ($) Annual fixed manufacturing cost ($) Variable marketing and administrative costs per unit ($) Fixed marketing and administrative costs ($) 20 20 12 12 12,00,000 12,00,000| 1.25 1.25 4,20,000 4,20,000 (i) Prepare income statements for both years, using full-absorption costing. (i) prepare income statement for both vears, using variable costing,

Sourk Enterprises released the figures given below from its records for the year land 2: Year 2 2,40,000 2,40,000 2,40,000 4,00,000 Year 1 Sales units Production units Selling price per unit ($) Variable manufacturing cost per unit ($) Annual fixed manufacturing cost ($) Variable marketing and administrative costs per unit ($) Fixed marketing and administrative costs ($) 20 20 12 12 12,00,000 12,00,000| 1.25 1.25 4,20,000 4,20,000 (i) Prepare income statements for both years, using full-absorption costing. (i) prepare income statement for both vears, using variable costing,

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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