Belian Sdn Bhd developed the following standard unit costs at 100% of its normal production capacity,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Belian Sdn Bhd developed the following standard unit costs at 100% of its normal production capacity, which is 50,000 units per year : RM Direct materials Direct labour Variable factory overhead Fixed factory overhead 63155 The selling price of each unit of product is RM25. Variable commercial expenses are RM1 per unit sold, and fixed commercial expenses total RM180,000 for the period. During the year, 49,000 units were produced and 52,000 units were sold. There are no work in process, beginning or ending inventories, and finished goods inventory is maintained at standard cost, which has not changed from the preceding year. For the current year, there is a net unfavorable variable cost variance in the amount of RM2,000. All standard cost variances are charged to cost of goods sold at the end of the period. Required: a) Prepare a comprehensive income statement on the absorption costing basis. (6 marks) b) Prepare a comprehensive income statement on the direct costing basis. (3 marks) c) Compute and explain the difference in operating income for the current year under absorption and direct costing. (3 marks) Belian Sdn Bhd developed the following standard unit costs at 100% of its normal production capacity, which is 50,000 units per year : RM Direct materials Direct labour Variable factory overhead Fixed factory overhead 63155 The selling price of each unit of product is RM25. Variable commercial expenses are RM1 per unit sold, and fixed commercial expenses total RM180,000 for the period. During the year, 49,000 units were produced and 52,000 units were sold. There are no work in process, beginning or ending inventories, and finished goods inventory is maintained at standard cost, which has not changed from the preceding year. For the current year, there is a net unfavorable variable cost variance in the amount of RM2,000. All standard cost variances are charged to cost of goods sold at the end of the period. Required: a) Prepare a comprehensive income statement on the absorption costing basis. (6 marks) b) Prepare a comprehensive income statement on the direct costing basis. (3 marks) c) Compute and explain the difference in operating income for the current year under absorption and direct costing. (3 marks)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Roberts Corporation developed the following standard unit costs at 100% of its normal production capacity, which is 50,000 units per year: Direct materials...
-
Placid Corporation developed the following standard unit costs at 100% of its normal production capacity, which is 50,000 units per year: Direct materials...
-
The two tugboats each exert a constant force F on the boat such that these forces are always directed perpendicular to the boats centerline. If the boat has a mass m and a radius of gyration k G...
-
Twenty liters of liquid n-propyl benzoate (C6H5CO2C3H7, SG = 1021) and 15 liters of liquid benzene are mixed and heated from 25C to 75C. Calculate the required heat input (kJ), using Kopps rule when...
-
Why does an organisation need to make changes or refinements to their mission statement?
-
Answer: y Use power series to solve the initial-value problem = n=0 y" + 4xy' +8y=0, x2n + M8 710 y(0) = 0, y' (0) = 1. x2n+1
-
The Laplace transform method derives a solution in terms of constants of integration and the determination of the constants is obtained through application of initial conditions. Indicate whether the...
-
The effect of an impulse applied to a SDOF system is to cause a discrete change in displacement. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the...
-
The convolution integral is the solution to the differential equation governing the motion of a SDOF system with initial conditions equal to zero. Indicate whether the statement presented is true or...
-
The equations are ___________ using mode shape ___________ with respect to ___________ and ___________. Regarding the derivation of modal analysis for an undamped system or a system with proportional...
-
The vector of forces for the right-hand side of the equations defining the principal coordinates is calculated by \(\mathbf{G}=\mathbf{P}^{T} \mathbf{F}\). Indicate whether the statement presented is...
Study smarter with the SolutionInn App