QUESTION TWO Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children.
QUESTION TWO Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION TWo
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:
Selling price (per unit)
Units in opening inventory
N$116,00
600
Units manufactured
2550
Units sold
3050
Units in closing inventory
Variable cost per unit:
100
Direct materials
N$12,00
N$50,00
N$6,50
Direct labour
Variable manufacturing overhead
Variable selling and administrative
N$10,00
Fixed costs:
N$81 000,00
Fixed manufacturing overhead
Fixed selling and administrative
N$19 000,00
The company produces the same number of units every month,
although the sales in units vary from month to month. The company's
variable costs per unit and total fixed costs have been constant from
month to month.
(where applicable, round off amounts to two decimal places)
2.2 Calculate the unit product cost for the month under absorption
costing.
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Follow-up Question
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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