Prenare an income statoment in columnar form for Adelaide Limited for February using:

Marginal costing

Hendry Ltd opened his new business on $1$ January $2022.$ On that date, the only asset was a bank

balance of $\pounds 11,000.$ During the year, Hendry's drawings from the business totalled $\pounds 36,000.$ On

$31$ December $2022,$ the assets and liabilities of the business were as follows:

Computers and furniture $\pounds 61,000$; inventory of raw materials $\pounds 17,500$; finished goods, at cost

$\pounds 8,400$; bank overdraft $\pounds 12,600$; trade payables $\pounds 6,500$; prepayments $\pounds 2,500$; trade receivables

$\pounds 5,500$; the provision for bad debts $\pounds 3,000$; bank loan $\pounds 40,000$; interest payable $\pounds 1,500$; accrued

expenses $\pounds 3,600.$

What is the profit of the business in the year ended $31$ December $2022?(15$ marks$)$

Spacey plc is in the manufacturing industry and it manufactures and sells a product known as

GMT$.$ The manager of the department that produces the products created a monthly budget

for the product at the beginning of the year, based on $9,000$ units of the product being

produced and sold. $(15$ marks$)$

However, in April, only $8,500$ units were actually produced and sold and his actual monthly

budget values were as follows:

Answer rating: 100% (QA)

Income Statement for Adelaide Limited For the month ended February 2022 Marginal Costing ... View the full answer