The following information was extracted from the accounting records of Hilton Manufacturers for the year ended September 2024: Inventory at the beginning of the year Production for the year Sales for the year Selling price per unit Direct Materials cost per unit Direct Labour cost per unit Variable Manufacturing overheads per unit Variable selling and administrative cost per unit Fixed manufacturing overhead cost Fixed selling and administrative cost UNITS Nil 28 500 24 000 R82 R 22 11 5 274 000 95 000
The following information was extracted from the accounting records of Hilton Manufacturers for the year ended September 2024: Inventory at the beginning of the year Production for the year Sales for the year Selling price per unit Direct Materials cost per unit Direct Labour cost per unit Variable Manufacturing overheads per unit Variable selling and administrative cost per unit Fixed manufacturing overhead cost Fixed selling and administrative cost UNITS Nil 28 500 24 000 R82 R 22 11 5 274 000 95 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The company utilises the first-in-first-out method of inventory valuation.
REQUIRED:
(Round of to two decimal places)
2.1 Prepare the Income Statement using the Marginal Costing method.
2.2 Prepare the Income Statement using the Absorption Costing method.
Transcribed Image Text:B030E
QUESTION TWO
The following information was extracted from the accounting records of Hilton Manufacturers for the year ended September
2024:
Inventory at the beginning of the year
Production for the year
Sales for the year
Selling price per unit
Direct Materials cost per unit
Direct Labour cost per unit
Variable Manufacturing overheads per unit
Variable selling and administrative cost per unit
Fixed manufacturing overhead cost
Fixed selling and administrative cost
UNITS
Nil
28 500
24 000
R82
R
22
11
7
5
274 000
95 000
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