MM manufacturing company with normal capacity of 20,000 units provides the following particulars for the year 2077: Production units…
BBS Cost and Management Accounting · 2079 · Solved Question with Answer
MM manufacturing company with normal capacity of 20,000 units provides the following particulars for the year 2077:
Production units --------------------------------------- 21,000
Sales units ---------------------------------------------- 20,000
Opening stock ------------------------------------------ 1,000
Direct material per unit ------------------------------ Rs. 5
Direct labour per unit --------------------------------- Rs. 4
Variable manufacturing cost per unit ------------- Rs. 5
Fixed manufacturing cost ---------------------------- Rs. 40,000
Production units --------------------------------------- 21,000
Sales units ---------------------------------------------- 20,000
Opening stock ------------------------------------------ 1,000
Direct material per unit ------------------------------ Rs. 5
Direct labour per unit --------------------------------- Rs. 4
Variable manufacturing cost per unit ------------- Rs. 5
Fixed manufacturing cost ---------------------------- Rs. 40,000
Variable selling and administrative cost per unit Rs. 2
Fixed selling and administrative cost ----------------- Rs. 30,000
Selling price per unit -------------------------------------- Rs. 20
Required: i) Closing stock units
ii) Fixed manufacturing cost per unit
iii) Income statement under variable costing and absorption costing
iv) Reconciliation statement
Fixed selling and administrative cost ----------------- Rs. 30,000
Selling price per unit -------------------------------------- Rs. 20
Required: i) Closing stock units
ii) Fixed manufacturing cost per unit
iii) Income statement under variable costing and absorption costing
iv) Reconciliation statement