Ocean Sails manufactures sailing boats in two models: the Wave Rider and the Stress Killer. The company currently uses a variable costing system for internal reporting purposes. Its budgeted profit statement for the year ended 31 March 2021 is provided in the following table:   Wave Rider (£) Stress Killer (£) Total (£) Sales revenues  52,500,000  105,000,000  157,500,000 Variable cost of goods sold  39,343,750  79,800,000  119,143,750 Variable marketing & admin costs  6,300,000  12,600,000  18,900,000 Contribution margin  6,856,250  12,600,000  19,456,250 Fixed manufacturing overhead      3,500,000 Fixed marketing & admin costs      16,000,000 Profit (Loss)     (43,750)   The following information from the budget is also available:   Wave Rider Stress Killer   (Units) (Units) Opening inventory 5 8 Units produced 20 25 Closing inventory 15 5 Units sold 10 28   The variable cost of goods sold comprises of direct materials and direct labour (there are no variable manufacturing overheads). The production of each unit of Wave Rider takes 750 labour hours, while each unit of Stress Killer requires 1,000 labour hours. Required: (a)         Using labour hours as overhead allocation base, rewrite the budgeted profit statement in an absorption costing format. Show all workings clearly.

Amazing Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: MINDE ZAP Requirement 1. Prepare income statements for Amazing Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing. (a). Prepare income statements for Amazing Screen in January, February, and March of 2020 under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all input fields. Enter a "0" for any zero balance accounts. January 2020 February 2020 March 2020 Requirements 1. Prepare income statements for Amazing Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Print Done The selling price per unit is $2,400. The…

Brindle Arts uses Variable Costing for internal purposes, but uses Absorption Costing for their financial reports. The following information is for Quarter 4, 2021 and Quarter 1, 2022.     Calculate unit product costs for Quarters 4 and 1 for Variable and Absorption Costing. Prepare an income statement for each method, then show why there is a difference between the two.                   Selling price per unit  $            150                           Quarter 4 Quarter 1   Variable costs per unit   Units in beginning inventory                    -                 1,750   Direct materials  $        45.00   Production (in units)           15,000            10,750   Direct labor  $        20.00   Sales (in units)           13,250            12,500   Variable overhead  $        15.00   Ending inventory             1,750                     -      Variable S&A  $        10.00                 Fixed Costs in total per quarter         Fixed manufacturing overhead…

Following is the revenue and cost data for Metlock Ltd. in the manufacturing of luxury shower curtains for the year ended December 31, 2022: NewsVariable manufacturing costs $34 per curtainVariable selling and administrative expenses $8 per curtain Fixed manufacturing overhead $53,900Fixed selling and administrative expenses $184,800 Units produced and sold 7, 700Selling price $84 per curtain. Prepare an income statement using absorption costing. Prepare an income statement using variable costing.