Saunders manufactures a single product, details of which are as follows. per unit $ selling price 1500
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Saunders manufactures a single product, details of which are as follows.
| per unit | $ |
| selling price | 1500 |
| direct materials | 400 |
| direct labour | 200 |
| variables overheads | 150 |
Annual fixed production overheads are budgeted to be $4 million and Saunders expects to produce 80,000 units of Bark each year. Overheads are absorbed on a per unit basis. Budgeted fixed selling costs are $1,520,000 per quarter.
Actual stock data for quarter of 2020 are given below.
| | January -March | April-June |
| Sales | 20000 | 23000 |
| Production | 22000 | 17000 |
| opening Stock | 5000 | 7000 |
Required-
1. Calculate closing stock.
2. Prepare a Marginal Costing Statement for both quarters.
3. Prepare an Absorption Costing Statement for both quarters.
4. Reconcile profit figures from both statements.
Expert Answer:
A Closing stock calculation Particulars January March April June Opening stock 5000 7000 Production 22000 17000 Total stock 27000 24000 Less Sales 20000 23000 Closing stock 7000 1000 B Marginal costin... View the full answer
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