The following data are available regarding an organization who makes a single product. Period 1 Production (units) 15,000 14,000 Sales Opening Stock Closing Stock 1,000 The following cost structure applies (based on a budgeted level of 17,000 units per period). Cost per unit $ Direct Material Direct Labour 2.00 6.00 Production Overheads 3.00 11.00 Selling price is $16 per unit Administrative overheads are $15,000 per period and the budgeted production overheads are $51,000 per period of which $34,000 (2) are fixed. What is the Absorption Costing Profit/Loss?
The following data are available regarding an organization who makes a single product. Period 1 Production (units) 15,000 14,000 Sales Opening Stock Closing Stock 1,000 The following cost structure applies (based on a budgeted level of 17,000 units per period). Cost per unit $ Direct Material Direct Labour 2.00 6.00 Production Overheads 3.00 11.00 Selling price is $16 per unit Administrative overheads are $15,000 per period and the budgeted production overheads are $51,000 per period of which $34,000 (2) are fixed. What is the Absorption Costing Profit/Loss?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The following data are available regarding an organization who makes a single product.
Production (units) 15,000
Sales
Opening Stock
Closing Stock
Period 1
Direct Material
Direct Labour
14,000
The following cost structure applies (based on a budgeted level of 17,000 units per period).
1,000
Cost per unit
$
2.00
6.00
Production Overheads 3.00
11.00
Selling price is $16 per unit
Administrative overheads are $15,000 per period and the budgeted production overheads are $51,000 per period of which $34,000
(2/3) are fixed.
What is the Absorption Costing Profit/Loss?
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