A Manufacturing Company with a normal capacity of production of 350,000 units supplied the following information for the year have been given below:…
2024 · Solved Question with Answer
A Manufacturing Company with a normal capacity of production of 350,000 units supplied the following information for the year have been given below:
| Production units | 300,000 |
| Sales units | 280,000 |
| Opening stock units | 50,000 |
| Selling price per unit | Rs 30 |
| Direct material cost per unit | Rs 7 |
| Direct labour cost per unit | Rs 5 |
| Manufacturing variable overhead cost per unit | Rs 2 |
| Fixed manufacturing cost | Rs 700,000 |
| Fixed selling and administrative expenses | Rs 350,000 |
| Variable selling and administrative cost per unit | Rs 1 |
Required:
a) Income Statement under Absorption Costing.
b) Reconciliation statement.