Stock production and sales data from a single product of Sweetsop are given in the following:     Period 1    Period 2    Period 3 Production (units)    60 000    70 000    65 000 Sales (unit)    60 000    55 000    65 000 Opening stock (units)    -    -    15 000 Closing stock (units)         15 000    5000 The financial data for the activity level of 60 000 units per period are as follows:                                                                                       Cost per unit                                     $ Direct material                            2.50 Direct labour                            3.00 Production overheads= 200% of direct labour        6.00 Total cost per unit                                 11.50 Selling price per unit                                                         18.00 Administrative overheads are fixed at $100 000 per period and half of the production overheads are fixed. Required From the above information : (1)    Prepare the marginal and absorption costing statements for the three-period listed (2)    Reconcile the statements for each period

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Stock production and sales data from a single product of Sweetsop are given in the following:
    Period 1    Period 2    Period 3
Production (units)    60 000    70 000    65 000
Sales (unit)    60 000    55 000    65 000
Opening stock (units)    -    -    15 000
Closing stock (units)         15 000    5000

The financial data for the activity level of 60 000 units per period are as follows:
                                                                                      Cost per unit
                                    $
Direct material                            2.50
Direct labour                            3.00
Production overheads= 200% of direct labour        6.00
Total cost per unit                                 11.50

Selling price per unit                                                         18.00

Administrative overheads are fixed at $100 000 per period and half of the production overheads are fixed.
Required
From the above information :
(1)    Prepare the marginal and absorption costing statements for the three-period listed
(2)    Reconcile the statements for each period

 

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