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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
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
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Quality control
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education