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INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units Sales for the year 3 500 ? 3 700 666 000 Selling price per unit 200 180 Production for the year 4 100 4 000 Finished goods at beginning of year ? Nil Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO method for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.

INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units Sales for the year 3 500 ? 3 700 666 000 Selling price per unit 200 180 Production for the year 4 100 4 000 Finished goods at beginning of year ? Nil Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO method for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business
Section: Chapter Questions
Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...
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Prepare the Income Statement of Mary’s Manufacturers the year ended 31 December 2020 using the:
1.1 Marginal costing method.
1.2 Absorption costing method.

INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units R Sales for the year 3 500 3 700 666 000 Selling price per unit 200 180 Production for the year 4 100 4 000 Finished goods at beginning of year ? Nil Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO method for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.
Transcribed Image Text:INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units R Sales for the year 3 500 3 700 666 000 Selling price per unit 200 180 Production for the year 4 100 4 000 Finished goods at beginning of year ? Nil Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO method for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory.
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