The following information concerns the company Plastic Products S.A. which produces a single product which is sold for 24 euros per unit. Of the 200,000 units produced in 20X3, 160,000 were sold during the year. It is noted that the company had no initial stocks of finished and semi-finished products on 1/1/20X3 and no final stocks of semi-finished products on 31/12/20X3. Then some additional information is given regarding the cost of the business during the 20X3 fiscal year. Cost element Direct materials Direct labor Variable general industrial overhead Fixed general industrial overhead Variable sales expenses Fixed sales expenses Value 480,000 euros 320,000 euros 160,000 euros 480,000 euros 160,000 euros 256,000 euros Calculate the operating result of the use 20X3 according to marginal and absorption costing.

The following information concerns the company Plastic Products S.A. which produces a single product which is sold for 24 euros per unit. Of the 200,000 units produced in 20X3, 160,000 were sold during the year. It is noted that the company had no initial stocks of finished and semi-finished products on 1/1/20X3 and no final stocks of semi-finished products on 31/12/20X3. Then some additional information is given regarding the cost of the business during the 20X3 fiscal year. Cost element Direct materials Direct labor Variable general industrial overhead Fixed general industrial overhead Variable sales expenses Fixed sales expenses Value 480,000 euros 320,000 euros 160,000 euros 480,000 euros 160,000 euros 256,000 euros Calculate the operating result of the use 20X3 according to marginal and absorption costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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