SEGMENTED REPORTING AND INVESTMENT CENTRE EVALUATION

The following are data related to Ecovest Company in 2020:

-Ecovest company produces 11,000 clothes (normal capacity 14,000) and has sold 10,000 jackets at a price of IDR 300,000.

- Variable costs per unit: sales and administration costs IDR 5,000 , Prime Cost IDR 90,000 (DM: DL = 2: 1), FOH IDR 36,000, -.

- Fixed Cost per unit IDR 54,000 for FOH, while sales and administration that occur are IDR 400,000,000.

Requested:

1) Calculate units of production cost in Absorption costing and Variable costing!

2) Compile an income statement using variable costing and absorption costing and make a reconciliation of any differences!