answer question 2

u 40% 23:58 All File Reader Question 2 (21 Marks - 38 Minutes) Normal 2013 Nov The following information was extracted from the accounting records of Jokers Ltd for the months ended 31 May 2013 and 30 June 2013 respectively: June 2013 May 2013 N$ N$ 168.00 37.80 175.00 45.50 Selling price per unit Variable cost per unit Variable selling and administration cost per unit Fixed production costs Fixed selling and administration costs 21.00 21.00 32 200.00 21 700.00 41 958.00 21 700.00 UNITS UNITS 6 300 5 600 Sales for the month Production for the month 7 000 6 300 The company did not have any finished units at the beginning of May 2013. Inventory is valued at the first-in-first-out method of valuation and no inventory losses were reported for the two months. The management accountant analysed the changes in unit costs and reported that the increase in variable costs are due to an increase in labour prices after the wages negotiation whilst the fixed costs increase due to a new rental agreement that was concluded for the factory building. MARKS 8 REQUIRED: Prepare the following reports for the month of June 2013: 2.1 The income statement according to the direct costing method 2.2 The income statement according to the absorption costing method 2.3 Reconcile the difference in profits according to the two methods TOTAL MARKS 10 3 21 Question 3 (17 Marks 31 Minutes) Normal 2014 Nov Craddle Ltd manufactures a single product with a selling price of N$28 per unit. Variable production costs per unit are: Page 3 of 71 PREVIOUS NEXT