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Thotho manufactures headscarves. The following information is available in her books on December 31, 2012.   BWP Opening inventory 1,500 Headscarves made during the year 9,000 Headscarves sold during the year 9,500 Closing inventory 1,000 Selling price 90 Manufacturing costs: Variable costs: - Direct material/headscarf - Direct labour hour cost used to make one scarf - Variable manufacturing overhead Fixed manufacturing overheads per year   25 9 5 150,000 Selling and administrative costs: Commission paid for selling one scarf Fixed selling and administration costs per year   10 100,000

Thotho manufactures headscarves. The following information is available in her books on December 31, 2012.   BWP Opening inventory 1,500 Headscarves made during the year 9,000 Headscarves sold during the year 9,500 Closing inventory 1,000 Selling price 90 Manufacturing costs: Variable costs: - Direct material/headscarf - Direct labour hour cost used to make one scarf - Variable manufacturing overhead Fixed manufacturing overheads per year   25 9 5 150,000 Selling and administrative costs: Commission paid for selling one scarf Fixed selling and administration costs per year   10 100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Thotho manufactures headscarves.

The following information is available in her books on December 31, 2012.

  BWP
Opening inventory 1,500
Headscarves made during the year 9,000
Headscarves sold during the year 9,500
Closing inventory 1,000
Selling price 90

Manufacturing costs: Variable costs:

- Direct material/headscarf

- Direct labour hour cost used to make one scarf

- Variable manufacturing overhead

Fixed manufacturing overheads per year

 

25

9

5

150,000

Selling and administrative costs:

Commission paid for selling one scarf

Fixed selling and administration costs per year

 

10

100,000
   

Prepare the income statement for the year ended December 31, 2012 using  Absorption cost

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