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TRY YOUR UNDERSTANDING QUESTION Number of units produced 6,000 Units sold 5,000 Units in opening inventory 0 Selling price per unit €20 Variable cost per unit          D/M                                                            €2          D/L                                                              4          V O/H                                                          1          Variable selling and administration                  3 Total Fixed Overhead costs € 30,000 Total Fixed selling and administration costs €10,000               Required Prepare a profit and loss (Income statement) under the absorption costing system Prepare a profit and loss (Income statement) under the variable costing system

TRY YOUR UNDERSTANDING QUESTION Number of units produced 6,000 Units sold 5,000 Units in opening inventory 0 Selling price per unit €20 Variable cost per unit          D/M                                                            €2          D/L                                                              4          V O/H                                                          1          Variable selling and administration                  3 Total Fixed Overhead costs € 30,000 Total Fixed selling and administration costs €10,000               Required Prepare a profit and loss (Income statement) under the absorption costing system Prepare a profit and loss (Income statement) under the variable costing system

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13PA: Grainger Company produces only one product and sells that product for $100 per unit. Cost...
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TRY YOUR UNDERSTANDING QUESTION

  • Number of units produced 6,000
  • Units sold 5,000
  • Units in opening inventory 0
  • Selling price per unit €20
  • Variable cost per unit

         D/M                                                            €2

         D/L                                                              4

         V O/H                                                          1

         Variable selling and administration                  3

  • Total Fixed Overhead costs € 30,000
  • Total Fixed selling and administration costs €10,000

 

            Required

  1. Prepare a profit and loss (Income statement) under the absorption costing system
  1. Prepare a profit and loss (Income statement) under the variable costing system

 

 

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