A company plans to produce and sell 50,000 units of it regular product during the coming...
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A company plans to produce and sell 50,000 units of it regular product during the coming month at GHe 12 per unit. A unit of the product requires 5kg of material valued at GHe0.5 per kg and 3 hours of direct labour paid at GH 0.75 per hour. Selling and distribution cost is budgeted at GH$50.000 variable and GH 60.000 fixed. Fixed production overheads is budgeted at GHe80.000 and GH$40.000 for administration. Required a. Calculate the product cost per unit under the following costing basis; i. Absorption Costing ii. Marginal Costing b. Prepare a budgeted profit statement for the coming month under the following costing basis; i. ii. Absorption Costing Marginal Costing A company plans to produce and sell 50,000 units of it regular product during the coming month at GHe 12 per unit. A unit of the product requires 5kg of material valued at GHe0.5 per kg and 3 hours of direct labour paid at GH 0.75 per hour. Selling and distribution cost is budgeted at GH$50.000 variable and GH 60.000 fixed. Fixed production overheads is budgeted at GHe80.000 and GH$40.000 for administration. Required a. Calculate the product cost per unit under the following costing basis; i. Absorption Costing ii. Marginal Costing b. Prepare a budgeted profit statement for the coming month under the following costing basis; i. ii. Absorption Costing Marginal Costing
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To calculate the product cost per unit under absorption costing and marginal costing we need to consider the different components of cost involved a Product Cost per Unit i Absorption Costing Under ab... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
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