R116 Selling price (per unit) Units in opening inventory 600 Units manufactured 2550 Units sold 3 050 Units in closing inventory 100 Variable costs per unit: Direct materials R12,00 Direct labour R50,00 Variable manufacturing overhead R6,50 Variable selling and administrative R10,00 Fixed costs: Fixed manufacturing overhead R81 000 Fixed selling and administrative R19 000 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) 2.1 Calculate the unit product cost for the month under marginal costing. 2.2 Calculate the unit product cost for the month under absorption costing 2.3 Prepare an income statement for the month using the absorption costing method.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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R 116
Selling price (per unit)
Units in opening inventory
600
Units manufactured
2 550
Units sold
3 050
Units in closing inventory
100
Variable costs per unit:
Direct materials
R12,00
Direct labour
R50,00
Variable manufacturing overhead
R6,50
Variable selling and administrative
R10,00
Fixed costs:
Fixed manufacturing overhead
R81 000
Fixed selling and administrative
R19 000
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)
2.1
Calculate the unit product cost for the month under marginal costing.
2.2
Calculate the unit product cost for the month under absorption costing
2.3
Prepare an income statement for the month using the absorption costing method.
2.4
Prepare an income statement for the month using the Marginal costing method.
Transcribed Image Text:R 116 Selling price (per unit) Units in opening inventory 600 Units manufactured 2 550 Units sold 3 050 Units in closing inventory 100 Variable costs per unit: Direct materials R12,00 Direct labour R50,00 Variable manufacturing overhead R6,50 Variable selling and administrative R10,00 Fixed costs: Fixed manufacturing overhead R81 000 Fixed selling and administrative R19 000 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) 2.1 Calculate the unit product cost for the month under marginal costing. 2.2 Calculate the unit product cost for the month under absorption costing 2.3 Prepare an income statement for the month using the absorption costing method. 2.4 Prepare an income statement for the month using the Marginal costing method.
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