Harvest Town is an agriculture companies that sells various agriculture products such as sugarcane, honey, oilseeds...

   

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Harvest Town is an agriculture companies that sells various agriculture products such as sugarcane, honey, oilseeds and etc. For the year 2020, the company managed to sold 8,000 units of sugarcane. The cost per unit of sugarcane was as follows: RM Direct material Direct labour Indirect cost 12.20 8.50 25.00 Additional inforrmation: a) 62% of indirect cost is fixed in nature. b) The selling price for sugarcane 55% more than the total cost per unit. c) There is no opening inventories and work in progress at the end of the year. d) Fixed administrative and selling and distribution overheads are RM 4.50 and RM 5.10 per total unit produced. c) The total production units: Jan - April Month May - Dec Unit 500 per month 25% more than the previous month f) Unit sold for 2020 is as follows: Month Jan - May June - Dec Unit 80% of unit produced (each month) | 18% more than the previous month Based on the description given above, PREPARE income statement for the year ended 31 December 2020 using marginal and absorption costing approaches. ELABORATE you answer on which approach produced higher net profit for the company. Provide your reason (s). (Round off your cost per unit into two decimal place and total cost to the nearest RM) Harvest Town is an agriculture companies that sells various agriculture products such as sugarcane, honey, oilseeds and etc. For the year 2020, the company managed to sold 8,000 units of sugarcane. The cost per unit of sugarcane was as follows: RM Direct material Direct labour Indirect cost 12.20 8.50 25.00 Additional inforrmation: a) 62% of indirect cost is fixed in nature. b) The selling price for sugarcane 55% more than the total cost per unit. c) There is no opening inventories and work in progress at the end of the year. d) Fixed administrative and selling and distribution overheads are RM 4.50 and RM 5.10 per total unit produced. c) The total production units: Jan - April Month May - Dec Unit 500 per month 25% more than the previous month f) Unit sold for 2020 is as follows: Month Jan - May June - Dec Unit 80% of unit produced (each month) | 18% more than the previous month Based on the description given above, PREPARE income statement for the year ended 31 December 2020 using marginal and absorption costing approaches. ELABORATE you answer on which approach produced higher net profit for the company. Provide your reason (s). (Round off your cost per unit into two decimal place and total cost to the nearest RM)

Answer rating: 100% (QA)

Computation of production and sales units Month Opening Units Produced Produced Units Rounded Off Units Sold Units Sold Rounded Off Closing Units Jan 0 500 500 400 400 100 Feb 100 500 500 400 400 200 ... View the full answer