Kamelwa Limited manufactures and sells a single product coded Kams. The following data relate to the...

 

Transcribed Image Text:

Kamelwa Limited manufactures and sells a single product coded Kams. The following data relate to the four quarters in the last financial year. Selling price per unit Variable cost per unit Fixed cost per quarter Normal activity is 500 units and production and sales for the four quarters are as follows: Sales Production Required (10) (ii) (iii) K 110 60 12000 Quarter 1 Units 500 500 There were no opening inventory at the start of quarter 1. Quarter 2 Units 400 500 Quarter 3 Units 550 450 Quarter 4 Units 450 500 Prepare profit statements for each of the quarters 1 to 4, based on absorption costing principles. Prepare profit statements for each of the quarters 1 to 4, based on marginal costing principles. Comment briefly on the results obtained in each period and in total by the two systems. Kamelwa Limited manufactures and sells a single product coded Kams. The following data relate to the four quarters in the last financial year. Selling price per unit Variable cost per unit Fixed cost per quarter Normal activity is 500 units and production and sales for the four quarters are as follows: Sales Production Required (10) (ii) (iii) K 110 60 12000 Quarter 1 Units 500 500 There were no opening inventory at the start of quarter 1. Quarter 2 Units 400 500 Quarter 3 Units 550 450 Quarter 4 Units 450 500 Prepare profit statements for each of the quarters 1 to 4, based on absorption costing principles. Prepare profit statements for each of the quarters 1 to 4, based on marginal costing principles. Comment briefly on the results obtained in each period and in total by the two systems.

Answer rating: 100% (QA)

Quarter Less Ending Inventory Add Begining Inventory COGS B Profit AB Profit Under Absorption Costin... View the full answer