Question: Please help me solve it ABAS Ltd makes and sells one product, which has the following standard production cost. Normal output is 18,500 units per
ABAS Ltd makes and sells one product, which has the following standard production cost. Normal output is 18,500 units per annum. Variable selling \& distribution costs are GHe125,600. Fixed selling, distribution and administration costs are GHc245,000 per annum. Opening Inventory of finished goods at 1 January 2022 is 1200 units. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is GHe250. Production and sales budgets are as follows: Required: I. Prepare profit statements for each of the six-monthly periods, using the following methods of costing. a) Marginal costing b) Absorption costing II. Reconcile the Marginal and absorption costing profits
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