Istanbul Trading Berhad produces and sells Turkish lamps. Budgeted information for its product, Tiara, in the...
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Istanbul Trading Berhad produces and sells Turkish lamps. Budgeted information for its product, Tiara, in the first quarter of 2021 are available: Inventory, 1 January 2021 Fixed Manufacturing Overhead Variable Cost of Goods Manufactured During January: Sales Production Fixed Manufacturing Overhead Variable Cost of Goods Manufactured Variable Selling & Administrative Expense Fixed Selling and Administration Selling Price Required: 6,000 units RM14.40 per unit RM71.00 per unit a) Determine the net income for the first quarter of 2021 under the: (i) Absorption costing method Variable costing method 75,000 units 70,000 units RM864,000 (based on normal volume: 60,000 units) RM71.00 per unit RM4.70 per unit RM380,000 RM115 per unit b) Reconcile the differences between the net income generated under absorption costing method and variable costing method. Istanbul Trading Berhad produces and sells Turkish lamps. Budgeted information for its product, Tiara, in the first quarter of 2021 are available: Inventory, 1 January 2021 Fixed Manufacturing Overhead Variable Cost of Goods Manufactured During January: Sales Production Fixed Manufacturing Overhead Variable Cost of Goods Manufactured Variable Selling & Administrative Expense Fixed Selling and Administration Selling Price Required: 6,000 units RM14.40 per unit RM71.00 per unit a) Determine the net income for the first quarter of 2021 under the: (i) Absorption costing method Variable costing method 75,000 units 70,000 units RM864,000 (based on normal volume: 60,000 units) RM71.00 per unit RM4.70 per unit RM380,000 RM115 per unit b) Reconcile the differences between the net income generated under absorption costing method and variable costing method.
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a i ii Working notes Unit Product Cost Absorption Costing Variable manufacturing Cost Fixed manufact... View the full answer
Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Posted Date:
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