Question: Accounting pls help Question II The purpose of this assignment is to enable students to understand the difference between marginal costing and absorption costing. Muiz

Accounting pls help
Question II The purpose of this assignment is to enable students to

Question II The purpose of this assignment is to enable students to understand the difference between marginal costing and absorption costing. Muiz Berhad is a food product manufacturing company. The following is information related to production costs. Variable cost per unit Direct raw materials Direct labor force Factory overhead Annual fixed expenses: Factory overhead Administrative and selling expenses Total monthly fixed cost 1.30 per unit 1.50 per unit 0.20 perunit 150,000 setahun 65,000 setahun 240 ooo The selling price has been set at RM5.OO per unit. The sales commission is 5% of the total sales (RM). The following is information related to production and sales units for the years 2021 and 2022. Initial inventory Production Sales 2021 (unit) 170,000 140,000 2022 (unit) 30,000 140,000 160,000 The ending inventory for the year 2022 is 10,000 units. You are required: a) Calculate the cost per unit of product using the marginal costing and absorption costing methods. b) Prepare income statements for the years 2021 and 2022 using the marginal costing and absorption costing methods. c) Adjust the net profit difference between marginal costing and absorption costing for the years 2021 and 2022. d) Briefly explain why there is a difference in net profit between marginal costing and absorption costing methods.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!