QUESTION FIVE (20 Marks)

INFORMATION

The following information relates to the only product made by Fabby Limited for the year ended 31 December 2021:

Opening Inventory 0

Number of units manufactured 99 000

Number of units sold (at R5 940 per unit) 98 000

Direct Materials costs per unit R990

Direct Labour costs per unit R1980

Variable manufacturing overheads cost per unit R980

Variable selling expenses per unit R220 Fixed Manufacturing overhead cost R4 950 000

Fixed selling and administrative expenses R1 980 000

REQUIRED:

Draft the income statement for the year ended 31 December 2021 using the:

1. Marginal Costing method (10 marks)
2. Absorption Costing method (10 marks)

QUESTION FIVE (20 Marks) INFORMATION The following information relates to the only product made by Fabby Limited for the year ended 31 December 2021 0 99 000 98 000 R990 Opening Inventory Number of units manufactured Number of units sold (at R5 940 per unit) Direct Materials costs per unit Direct Labour costs per unit Variable manufacturing overheads cost per unit Variable selling expenses per unit Fixed Manufacturing overhead cost Fixed selling and administrative expenses R1980 R980 R220 R4 950 000 R1 980 000 REQUIRED: Draft the income statement for the year ended 31 December 2021 using the: 5.1 Marginal Costing method 5.2 Absorption Costing method (10 marks) (10 marks) QUESTION FIVE (20 Marks) INFORMATION The following information relates to the only product made by Fabby Limited for the year ended 31 December 2021 0 99 000 98 000 R990 Opening Inventory Number of units manufactured Number of units sold (at R5 940 per unit) Direct Materials costs per unit Direct Labour costs per unit Variable manufacturing overheads cost per unit Variable selling expenses per unit Fixed Manufacturing overhead cost Fixed selling and administrative expenses R1980 R980 R220 R4 950 000 R1 980 000 REQUIRED: Draft the income statement for the year ended 31 December 2021 using the: 5.1 Marginal Costing method 5.2 Absorption Costing method (10 marks) (10 marks)