Galway Plc manufactures and sells a single product. The following budgeted/ actual information is provided in relation to the production of this product: $ Selling price per unit 40.00 Direct materials per unit 8.00 Direct labour per unit 5.00 Variable production overheads per unit 5.00 Details for the months of May 2015 are as follows: Мay Production of Product A 500 Sales of Product A (units) 480 Fixed production overheads are budgeted at $6,000 per month and are absorbed on a unit basis. The normal level of production is budgeted at 400 units per month. Other costs Fixed selling $4,000 per month Fixed Administration $2,000 per month There was opening inventory for Product A at the start of May of 60 units Prepare for each year A. Marginal Costing Statement marks) B. Absorption Costing Statement

Galway Plc manufactures and sells a single product. The following budgeted/ actual information is provided in relation to the production of this product: $ Selling price per unit 40.00 Direct materials per unit 8.00 Direct labour per unit 5.00 Variable production overheads per unit 5.00 Details for the months of May 2015 are as follows: Мay Production of Product A 500 Sales of Product A (units) 480 Fixed production overheads are budgeted at $6,000 per month and are absorbed on a unit basis. The normal level of production is budgeted at 400 units per month. Other costs Fixed selling $4,000 per month Fixed Administration $2,000 per month There was opening inventory for Product A at the start of May of 60 units Prepare for each year A. Marginal Costing Statement marks) B. Absorption Costing Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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