Q. The following data were taken from the records of a company.                                                   Period 1                       Period 2                       Period 3 Production(units)                    30,000                         38000                          27000 Sales                                        30,000                         27000                          38000 Opening stock                                                                                                 11,000 Closing stock                          ------                             11,000                         -------                                                   Per unit cost are as follows: Direct material                                                $ 1.5 Direct labor                                                        1.0 Production overhead                                           3.0 Selling price per unit                                           $ 9 Administrative overheads are fixed at $25000 and one third of the production overheads are fixed. Required Prepare separate income statements on full costing and variable costing

Question

Q. The following data were taken from the records of a company.

 

                                                Period 1                       Period 2                       Period 3

Production(units)                    30,000                         38000                          27000

Sales                                        30,000                         27000                          38000

Opening stock                                                                                                 11,000

Closing stock                          ------                             11,000                         -------

 

                                               

Per unit cost are as follows:

Direct material                                                $ 1.5

Direct labor                                                        1.0

Production overhead                                           3.0

Selling price per unit                                           $ 9

Administrative overheads are fixed at $25000 and one third of the production overheads are fixed.

Required

Prepare separate income statements on full costing and variable costing

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