Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following data relate to Nizwa Manufacturing LLC for the year ended 30 April 2020: Cost of Production: Beginning Inventory: Nil Manufacturing Overhead - Fixed RO 1,700 Direct Labor RO 42,000 Manufacturing Overhead - Variable RO 18,000 Units Sold (@ RO 10) 42,000 Sales Commission (Variable) RO 21,000 Direct Expenses RO 15,000 Sales Salaries (Fixed) RO 5,500 Direct Materials RO 15,000 Administrative Expenses (Fixed) RO 2,800 Units Produced 50,000 Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing

The following data relate to Nizwa Manufacturing LLC for the year ended 30 April 2020: Cost of Production: Beginning Inventory: Nil Manufacturing Overhead - Fixed RO 1,700 Direct Labor RO 42,000 Manufacturing Overhead - Variable RO 18,000 Units Sold (@ RO 10) 42,000 Sales Commission (Variable) RO 21,000 Direct Expenses RO 15,000 Sales Salaries (Fixed) RO 5,500 Direct Materials RO 15,000 Administrative Expenses (Fixed) RO 2,800 Units Produced 50,000 Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
The following data relate to Nizwa Manufacturing LLC for the year ended 30 April 2020: Cost of Production: Beginning Inventory: Nil Manufacturing Overhead - Fixed RO 1,700 Direct Labor RO 42,000 Manufacturing Overhead - Variable RO 18,000 Units Sold (@ RO 10) 42,000 Sales Commission (Variable) RO 21,000 Direct Expenses RO 15,000 Sales Salaries (Fixed) RO 5,500 Direct Materials RO 15,000 Administrative Expenses (Fixed) RO 2,800 Units Produced 50,000 Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing. a. RO 301,880 b. RO 117,843 c. RO 422,880 d. RO 302,157
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
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
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
SEE MORE TEXTBOOKS