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
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
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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Solved in 3 steps
