A manufacturing company with normal capacity of 30,000 units provides the following particulars: Productions units: 25,000 Sales units: 26,000…
BBS Cost and Management Accounting · 2082 · Solved Question with Answer
A manufacturing company with normal capacity of 30,000 units provides the following particulars:
Productions units: 25,000
Sales units: 26,000
Closing stock units: 4,000
Direct material per unit: Rs. 6
Direct labour per unit: Rs. 4
Variable manufacturing cost per unit: Rs. 5
Variable selling expenses per unit: Rs. 2
Selling price per unit: Rs. 30
Fixed manufacturing OH per unit: Rs. 5
Fixed administrative and selling expenses: Rs. 72,000
Required:
a. Income statement under absorption costing system.
b. Reconciled profit under variable costing system.