Use the information given in the image to prepare the Income Statement for March 2022 according to the absorption costing method.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Use the information given in the image 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe692f874-c4f5-4c2b-b06b-5ee532a254c6%2Fd701ea3d-f928-4e27-9fe5-9d7ad6ed4f73%2F1ayf38_processed.png&w=3840&q=75)
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