QUESTION TWoHendry Limited produces a mini-kitchen called Town Cook, which isenjoying extensive popularity amongst young children.The following data is available for the month:Selling price (per unit)Units in opening inventoryN$116,00600Units manufactured2550Units sold3050Units in closing inventoryVariable cost per unit:100Direct materialsN$12,00N$50,00N$6,50Direct labourVariable manufacturing overheadVariable selling and administrativeN$10,00Fixed costs:N$81 000,00Fixed manufacturing overheadFixed selling and administrativeN$19 000,00The company produces the same number of units every month,although the sales in units vary from month to month. The company'svariable costs per unit and total fixed costs have been constant frommonth to month.(where applicable, round off amounts to two decimal places)2.2 Calculate the unit product cost for the month under absorptioncosting.

it is a traditional costing system for allocating various overhead incurred in production and…

Answered: QUESTION TWO Hendry Limited produces a…

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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Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children.
The following data is available for the month:

Calculate the unit product cost for the month under marginal costing.
Calculate the unit product cost for the month under absorption costing.
Prepare an income statement for the month using the absorption costing method.
Prepare an income statement for the month using the Marginal costing method.

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