Rexon Company Ltd, which produces only one product, has provided the following data concerning its operations,...

 

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Rexon Company Ltd, which produces only one product, has provided the following data concerning its operations, for the month of August 2021: Selling price Units in beginning inventory Units produced Units sold Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Rs95 100 6,200 5,900 Rs42 Rs28 Rs1 Rs5 Rs62,000 R$35,400 The company produces the same number of units every month, although the sales and closing inventory in units, vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required, for the month of August 2021: (i) The unit product cost under variable costing. (ii) The unit product cost under absorption costing. (iii) An income statement using the variable costing method. (iv) An income statement using the absorption costing method. (v) Reconcile the variable costing and absorption costing net incomes. (2 marks) (3 marks) (8 marks) (8 marks) (4 marks) Rexon Company Ltd, which produces only one product, has provided the following data concerning its operations, for the month of August 2021: Selling price Units in beginning inventory Units produced Units sold Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Rs95 100 6,200 5,900 Rs42 Rs28 Rs1 Rs5 Rs62,000 R$35,400 The company produces the same number of units every month, although the sales and closing inventory in units, vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required, for the month of August 2021: (i) The unit product cost under variable costing. (ii) The unit product cost under absorption costing. (iii) An income statement using the variable costing method. (iv) An income statement using the absorption costing method. (v) Reconcile the variable costing and absorption costing net incomes. (2 marks) (3 marks) (8 marks) (8 marks) (4 marks)