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

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

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Description: Number of units produced 6,000Units sold 5,000Units in opening inventory 0Selling price per unit €20Variable cost per unit D/M €2 D/L

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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