GLOVERS is the major supplier of gloves for local markets. During the financial year that ended...

 

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GLOVERS is the major supplier of gloves for local markets. During the financial year that ended 31 December 2021, the following information was extracted: a. • Detailed balance of finished goods inventory of gloves: 1 January 2021 31 December 2021 2,000 C. • As planned, the factory produced 20,000 units of gloves during the year. You are required to prepare: A Profit & Loss Statement for the year ended 31 December 2021 using the variable costing format. d. • The variable manufacturing cost incurred were: direct material cost were RM8 per unit, direct labour cost were RM12 per unit and variable manufacturing overhead were RM7 per unit total • The selling and administrative expenses incurred during the year were: variable selling, and administrative expense were RM3 per unit • Fixed cost totaled RM1,900,000 with 40% is related to selling and administrative • All of the gloves are sold for RM180 per unit. A total of 18,000 units were sold during the year. b. A Profit & Loss Statement for the year ended 31 December 2021 using the absorption costing format. A statement of reconciliation of net profit between absorption costing and variable costing. Briefly explain why GLOVERS would prepare profit & loss statement using absorption costing. GLOVERS is the major supplier of gloves for local markets. During the financial year that ended 31 December 2021, the following information was extracted: a. • Detailed balance of finished goods inventory of gloves: 1 January 2021 31 December 2021 2,000 C. • As planned, the factory produced 20,000 units of gloves during the year. You are required to prepare: A Profit & Loss Statement for the year ended 31 December 2021 using the variable costing format. d. • The variable manufacturing cost incurred were: direct material cost were RM8 per unit, direct labour cost were RM12 per unit and variable manufacturing overhead were RM7 per unit total • The selling and administrative expenses incurred during the year were: variable selling, and administrative expense were RM3 per unit • Fixed cost totaled RM1,900,000 with 40% is related to selling and administrative • All of the gloves are sold for RM180 per unit. A total of 18,000 units were sold during the year. b. A Profit & Loss Statement for the year ended 31 December 2021 using the absorption costing format. A statement of reconciliation of net profit between absorption costing and variable costing. Briefly explain why GLOVERS would prepare profit & loss statement using absorption costing.

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e Working notes Reconciliation of units Opening stock Jan 1 2021 Production units during the year Su... View the full answer