Bindu Ltd is a manufacturing company. The company provided you with the following information for the...

 

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Bindu Ltd is a manufacturing company. The company provided you with the following information for the two years ended 30 June 2002 and 30 June 2003: 2002 2003 Sales Production Fixed costs: Unit data: c) d) Manufacturing Administration and marketing Selling price Direct materials Direct labour Variable production overhead Units 4 200 4 500 $ 36 000 11 400 47 10 15 7 Units 4 400 4 800 $ 43 200 13 680 Prepare the comparative profit statements for the two years using absorption costing. Prepare the comparative profit statements for the two years using marginal costing. 51 12 There were no opening stocks of finished goods in the year ended 30 June 2002. Stocks are valued on a First In, First Out (FIFO) basis. 18 9 a) State three differences between absorption (total) costing and marginal (variable) costing. b) Calculate the closing stocks for each year using the absorption costing method and the marginal costing method. Bindu Ltd is a manufacturing company. The company provided you with the following information for the two years ended 30 June 2002 and 30 June 2003: 2002 2003 Sales Production Fixed costs: Unit data: c) d) Manufacturing Administration and marketing Selling price Direct materials Direct labour Variable production overhead Units 4 200 4 500 $ 36 000 11 400 47 10 15 7 Units 4 400 4 800 $ 43 200 13 680 Prepare the comparative profit statements for the two years using absorption costing. Prepare the comparative profit statements for the two years using marginal costing. 51 12 There were no opening stocks of finished goods in the year ended 30 June 2002. Stocks are valued on a First In, First Out (FIFO) basis. 18 9 a) State three differences between absorption (total) costing and marginal (variable) costing. b) Calculate the closing stocks for each year using the absorption costing method and the marginal costing method.

Answer rating: 100% (QA)

a Under absorption costing both fixed and variable costs are assigned to products Under marginal cos... View the full answer