Vale Manufacturing started in business on 1 April 20X3, and incurred the following costs during its first

Question:

Vale Manufacturing started in business on 1 April 20X3, and incurred the following costs during its first three years.


Required:

(a) Prepare a statement showing the gross profit for each of the three years  if the company used:

(i) The marginal costing approach to valuing stock;

(ii) The absorption costing approach to valuing stock.

(b) Advise the company of the advantages and disadvantages of using each method.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: