Delightful Eats produces vegan gummies for its customers. The following information relates to the production of...

 

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Delightful Eats produces vegan gummies for its customers. The following information relates to the production of the bottles of vegan gummies for the period ending 30 June 2019. Production (units) Sales (units) Fixed production cost Fixed selling overhead Budgeted 22,500 24,000 $225,000 $250,000 Actual 23,750 24,650 $244,500 $250,000 The fixed production overhead was absorbed at a pre-determined rate per unit produced. One bottle of vegan gummy was sold for $160. At the beginning of May 2018, there was opening inventory of 1,350 units valued at $81,000; this includes fixed production overhead of $13,500. Required: a) Prepare a marginal costing income statement for the company clearly showing the treatment of inventory for the period ending June 30, 2019. (7 marks) b) Prepare an absorption costing income statement for the company. (11 marks) c) Reconcile the income under both statements. (3 marks) d) Distinguish between variable costing and absorption costing. (4 marks) Delightful Eats produces vegan gummies for its customers. The following information relates to the production of the bottles of vegan gummies for the period ending 30 June 2019. Production (units) Sales (units) Fixed production cost Fixed selling overhead Budgeted 22,500 24,000 $225,000 $250,000 Actual 23,750 24,650 $244,500 $250,000 The fixed production overhead was absorbed at a pre-determined rate per unit produced. One bottle of vegan gummy was sold for $160. At the beginning of May 2018, there was opening inventory of 1,350 units valued at $81,000; this includes fixed production overhead of $13,500. Required: a) Prepare a marginal costing income statement for the company clearly showing the treatment of inventory for the period ending June 30, 2019. (7 marks) b) Prepare an absorption costing income statement for the company. (11 marks) c) Reconcile the income under both statements. (3 marks) d) Distinguish between variable costing and absorption costing. (4 marks)

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Answer a Delightful Eats vegan gummies income statement For the period ending 30 June 2019 Sales revenue 24000 x 160 3840000 Less Cost of goods sold O... View the full answer