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REQUIRED Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method.

REQUIRED Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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2.1 REQUIRED Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. INFORMATION Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Costs/Expenses Direct materials Direct labour Manufacturing overheads cost Marketing and administrative cost Fixed R1 200 000 R600 000 (10 marks) Variable R12 per unit produced R8 per unit produced R4 per unit produced R2 per unit sold
Transcribed Image Text:2.1 REQUIRED Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. INFORMATION Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Costs/Expenses Direct materials Direct labour Manufacturing overheads cost Marketing and administrative cost Fixed R1 200 000 R600 000 (10 marks) Variable R12 per unit produced R8 per unit produced R4 per unit produced R2 per unit sold
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