On February 1, 2017, there were 10,000 bottles of cane juice in inventory at Naturally Sweet....

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On February 1, 2017, there were 10,000 bottles of cane juice in inventory at Naturally Sweet. The budgeted fixed overhead for the period was $150,000 and the budgeted production units were 75,000. Below are data relevant to the year ended January 31, 2018 to manufacture and sell cane juice: Selling price per unit Labour cost per unit Direct material per unit Direct expense per unit Variable overheads per unit Fixed overheads (actual) Variable selling per unit Actual production Actual sales $100 $20 $15 $5 $15 $190,000 S5 80,000 85,000 Required: a. Prepare an income statement using marginal costing. b. Prepare an income statement using absorption costing. c. Reconciling profits between marginal costing and absorption costing. On February 1, 2017, there were 10,000 bottles of cane juice in inventory at Naturally Sweet. The budgeted fixed overhead for the period was $150,000 and the budgeted production units were 75,000. Below are data relevant to the year ended January 31, 2018 to manufacture and sell cane juice: Selling price per unit Labour cost per unit Direct material per unit Direct expense per unit Variable overheads per unit Fixed overheads (actual) Variable selling per unit Actual production Actual sales $100 $20 $15 $5 $15 $190,000 S5 80,000 85,000 Required: a. Prepare an income statement using marginal costing. b. Prepare an income statement using absorption costing. c. Reconciling profits between marginal costing and absorption costing.

Answer rating: 100% (QA)

a Before making an income statement we need to calculate the cost per unit for inventory Particulars Marginal costing Absorption costing Total units p... View the full answer