The following data is relating to two factories which they only produce and sell a single product: Factory 1 Factory 2 Selling price per unit RM 10 RM 12 Variable cost per unit RM 4 RM 8 Annual fixed cost RM 20,000 RM 120,000 Production level (units) 5,000 units 60,000 units Sales (units) 4,200 units 57,500 units Required: Prepare for each factory the statement to show how profit is calculated by using Marginal Costing method.
The following data is relating to two factories which they only produce and sell a single product: Factory 1 Factory 2 Selling price per unit RM 10 RM 12 Variable cost per unit RM 4 RM 8 Annual fixed cost RM 20,000 RM 120,000 Production level (units) 5,000 units 60,000 units Sales (units) 4,200 units 57,500 units Required: Prepare for each factory the statement to show how profit is calculated by using Marginal Costing method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following data is relating to two factories which they only produce and sell a single product:
|
Factory 1 |
Factory 2 |
Selling price per unit |
RM 10 |
RM 12 |
Variable cost per unit |
RM 4 |
RM 8 |
Annual fixed cost |
RM 20,000 |
RM 120,000 |
|
|
|
Production level (units) |
5,000 units |
60,000 units |
Sales (units) |
4,200 units |
57,500 units |
Required:
Prepare for each factory the statement to show how profit is calculated by using Marginal Costing method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education