A firm manufactures and sells single product only which sells for Rs 50 per unit. There were
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Question:
A firm manufactures and sells single product only which sells for Rs 50 per unit. There were no stocks at the end of August and other information is as follows.
Standard cost per unit | Rs |
Direct material | 18 |
Direct wages | 4 |
Variable production overhead | 3 |
Budgeted and actual costs per month | |
Fixed production overhead | 99,000 |
Fixed selling expenses | 14,000 |
Fixed administration expenses | 26,000 |
Variable selling expenses | 10% of sales value |
Normal capacity is 11,000 units per month. The number of units produced and sold was:
September Units | October Units | |
Production | 14,000 | 10,200 |
Sales | 12,800 | 11,000 |
Required: Prepare P&L statement for the September and October applying:
- Marginal Costing
2. Absorption Costing
Expert Answer:
Answer 1 PL statement for the September and October applying Marginal Costing Particulars September ... View the full answer
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