Synergy Manufacturing Co. Ltd. manufactures Product A and Product B. The following information is available for March 2020 Product A Product B Production (units) 5,000 3,500 Sales (units) 4,600 3,200 Opening inventory (units) Financial data: Product A Product B Unit selling price £ 180.00 £ 150.00 Unit cost: direct materials £ 30.00 £ 24.00 direct labour £ 36.00 £ 24.00 variable production overheads £ 24.00 £ 16.00 fixed production overheads £ 60.00 £ 40.00 variable selling overheads £ 2.00 £ 2.00 Fixed production overheads for the period were £210,000 and fixed administration overheads were £54,000. Please note that fixed production overheads and fixed administration overheads are shared based on the number of production units for Product A and Product B. Required: Based on the details provided in the table below, prepare and interpret accurate income statements for the company using a range of management accounting techniques, such as marginal and absorption costs.
Synergy Manufacturing Co. Ltd. manufactures Product A and Product B. The following information is available for March 2020 Product A Product B Production (units) 5,000 3,500 Sales (units) 4,600 3,200 Opening inventory (units) Financial data: Product A Product B Unit selling price £ 180.00 £ 150.00 Unit cost: direct materials £ 30.00 £ 24.00 direct labour £ 36.00 £ 24.00 variable production overheads £ 24.00 £ 16.00 fixed production overheads £ 60.00 £ 40.00 variable selling overheads £ 2.00 £ 2.00 Fixed production overheads for the period were £210,000 and fixed administration overheads were £54,000. Please note that fixed production overheads and fixed administration overheads are shared based on the number of production units for Product A and Product B.
Required:
Based on the details provided in the table below, prepare and interpret accurate income statements for the company using a range of
![Synergy Manufacturing Co. Ltd. manufactures Product A and Product B.
The following information is available for March 2020
Product A
Product B
Production (units)
5,000
3,500
Sales (units)
4,600
3,200
Opening inventory (units)
Financial data:
Product A
Product B
Unit selling price
£ 180.00
£ 150.00
Unit cost:
direct materials
£ 30.00
£ 24.00
direct labour
£ 36.00
£ 24.00
variable production overheads
£ 24.00
£ 16.00
fixed production overheads
£ 60.00
£ 40.00
variable selling overheads
£
2.00
£
2.00
Fixed production overheads for the period were £210,000 and fixed administration overheads were
£54,000.
Please note that fixed production overheads and fixed administration overheads are shared based on the
number of production units for Product A and Product B.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fd9bb9b-67ac-463c-bd3e-ea8703757fa5%2F9ba8cc9c-24e9-4d8f-abbe-42409337aa6f%2F7v4hu0m_processed.png&w=3840&q=75)
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