The following data relate to Nizwa Manufacturing LLC for the year ended 30 April 2020: Cost of Production: Beginning Inventory: Nil Manufacturing Overhead - Fixed RO 1,700 Direct Labor RO 42,000 Manufacturing Overhead - Variable RO 18,000 Units Sold (@ RO 10) 42,000 Sales Commission (Variable) RO 21,000 Direct Expenses RO 15,000 Sales Salaries (Fixed) RO 5,500 Direct Materials RO 15,000 Administrative Expenses (Fixed) RO 2,800 Units Produced 50,000 Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing
The following data relate to Nizwa Manufacturing LLC for the year ended 30 April 2020: Cost of Production: Beginning Inventory: Nil Manufacturing Overhead - Fixed RO 1,700 Direct Labor RO 42,000 Manufacturing Overhead - Variable RO 18,000 Units Sold (@ RO 10) 42,000 Sales Commission (Variable) RO 21,000 Direct Expenses RO 15,000 Sales Salaries (Fixed) RO 5,500 Direct Materials RO 15,000 Administrative Expenses (Fixed) RO 2,800 Units Produced 50,000 Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 4E: The following production data came from the records of Olympic Enterprises for the year ended...
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The following data relate to Nizwa Manufacturing LLC for the year ended 30 April 2020:
Cost of Production:
Beginning Inventory: Nil
Manufacturing Overhead - Fixed RO 1,700
Direct Labor RO 42,000
Manufacturing Overhead - Variable RO 18,000
Units Sold (@ RO 10) 42,000
Sales Commission (Variable) RO 21,000
Direct Expenses RO 15,000
Sales Salaries (Fixed) RO 5,500
Direct Materials RO 15,000
Administrative Expenses (Fixed) RO 2,800
Units Produced 50,000
Assume Direct Material and Direct Labor are direct costs. Select from the following what is the amount of profit earned by using Income Statement under Absorption Costing.
a.
RO 301,880
b.
RO 117,843
c.
RO 422,880
d.
RO 302,157
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