COST ACCOUNTING

UNIT $3$: ACTIVITIES

QUESTION $1$ :$=$

REQUIRED

$1\mathrm{.}1$ Use the information provided below to prepare the Income Statement of Vivo Manufacturers for March $2024$ using the following methods:

$1\mathrm{.}1\mathrm{.}1$ Variable costing

$1\mathrm{.}1\mathrm{.}2$ Absorption costing

$1\mathrm{.}2$ Reconcile the profit calculated according to variable costing $($in question $1\mathrm{.}1\mathrm{.}1)$ with the profit calculated according to absorption costing $($in question $1\mathrm{.}1\mathrm{.}2).$

INFORMATION

The following information relates to the only product produced by Vivo Manufacturers during March $2024$:

$\backslash$table$[[$Opening inventory,Ni$],[$Number of units manufactured,$3000],[$Number of units soid,$2500],[$Selling price per unit,R$300],[$Direct materials cost per unit,R$50],[$Direct labour cost per unit,R$50],[$Foxed manufacturing overhead costs,R$90000],[$Variable manufacturing overheads per unit,R$30],[$Fixed selling costs,R$50000],[$Fixed administrative costs,R$650000],[$Variable selling costs per unit,R$20]]$