Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022:SalesSelling price per unitFinished products on 01 March 2022Products manufactured during the monthVariable manufacturing costs per unitVariable selling and administrative costs per unit soldFixed manufacturing costsFixed selling and administrative costsAdditional information3 200 unitsR100400 units3 600 unitsR26R12R25 200R12 400The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60 and R26.20 respectively.

Absorption Costing :- it is an inventory Valuation method. It considered all cost associates with…

Answered: Use the information given below to…

Use the information given below to prepare the Income Statement for March 2022 according to the absorption costing method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Use the information given below to prepare the Income Statement for March 2022 according to the
absorption costing method.

INFORMATION
The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31
March 2022:
Sales
Selling price per unit
Finished products on 01 March 2022
Products manufactured during the month
Variable manufacturing costs per unit
Variable selling and administrative costs per unit sold
Fixed manufacturing costs
Fixed selling and administrative costs
Additional information
3 200 units
R100
400 units
3 600 units
R26
R12
R25 200
R12 400
The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March
2022 was R21.60 and R26.20 respectively.

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