From the following information, prepare an Income Statement under:(a) Marginal Costing; (b) Absorption Costing.ParticularsProduct (RO)XYZDirect Material5,50020,0002,000Direct Wages7,0007,0001,000Factory Overheads - Fixed2,0001,0001,500Factory Overheads - Variable1,9008,0002,500Selling Overheads - Fixed1,000500400Selling Overheads - Variable1,0004,0001,000Sales22,00041,00012,000Fixed factory overhead and fixed selling overhead apportioned to products X, Y and Z on equitable bases.

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Answered: From the following information, prepare…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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From the following information, prepare an Income Statement under:

(a) Marginal Costing; (b) Absorption Costing.

Particulars	Product (RO)
X	Y	Z
Direct Material	5,500	20,000	2,000
Direct Wages	7,000	7,000	1,000
Factory Overheads - Fixed	2,000	1,000	1,500
Factory Overheads - Variable	1,900	8,000	2,500
Selling Overheads - Fixed	1,000	500	400
Selling Overheads - Variable	1,000	4,000	1,000
Sales	22,000	41,000	12,000

Fixed factory overhead and fixed selling overhead apportioned to products X, Y and Z on equitable bases.

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