QUESTION 4 Mable PLC has the following data for November and December 2007. Basic production standard cost and selling price per unit of product is: Direct Material Direct Labour Variable overhead Fixed overhead (based on K1,500,000 and 150,000 units of normal activity) Total standard cost Unit selling price Other expenses: Fixed selling and administration overhead: Sales commission: Output and sales in units. Opening inventory Production Total absorption costing (i) (ii) Marginal costing 5% of sales value November Nil K 13 15 2 10 40 K50 K650,000 December 170,000 Sales 140,000 Closing inventory 30,000 Actual fixed production overheads for each month were the same as the budgeted amount. Required (a) Prepare a profit statement for each of the two months of November and December 2007 using: 30,000 140,000 160,000 10,000 (b) Prepare a reconciliation of the differences in net profit reported under the two systems for each of the two months.
QUESTION 4 Mable PLC has the following data for November and December 2007. Basic production standard cost and selling price per unit of product is: Direct Material Direct Labour Variable overhead Fixed overhead (based on K1,500,000 and 150,000 units of normal activity) Total standard cost Unit selling price Other expenses: Fixed selling and administration overhead: Sales commission: Output and sales in units. Opening inventory Production Total absorption costing (i) (ii) Marginal costing 5% of sales value November Nil K 13 15 2 10 40 K50 K650,000 December 170,000 Sales 140,000 Closing inventory 30,000 Actual fixed production overheads for each month were the same as the budgeted amount. Required (a) Prepare a profit statement for each of the two months of November and December 2007 using: 30,000 140,000 160,000 10,000 (b) Prepare a reconciliation of the differences in net profit reported under the two systems for each of the two months.
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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