SO 4 QUESTION 2 Bolte Manufacturing operations for 2017 are as follows: Per unit: Sales price Direct material cost 18 Direct wages Variable production overhead 3 Per month: Fixed production overhead 99 000 Fixed selling expenses 14 000 Fixed administration expenses 26 000 Variable selling expenses is 10% of sales value. Normal capacity was 11 000 units per month. January February Units Units Sales 10 000 12 000 Production 12 000 10 000 Using the two methods: A. Compute the unit production cost (4 marks) 3. Determine the value of the closing inventory (7 marks) c. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April marks) D. Reconcile the net profits for March and April (3 marks) Comment on the differences of the two systems with respect to: 1. Stock valuations (2 marks) Period profits (2 marks) 22 TOTAL 50 MARKS Ymester SO 4 QUESTION 2 Bolte Manufacturing operations for 2017 are as follows: Per unit: Sales price Direct material cost 18 Direct wages Variable production overhead 3 Per month: Fixed production overhead 99 000 Fixed selling expenses 14 000 Fixed administration expenses 26 000 Variable selling expenses is 10% of sales value. Normal capacity was 11 000 units per month. January February Units Units Sales 10 000 12 000 Production 12 000 10 000 Using the two methods: A. Compute the unit production cost (4 marks) 3. Determine the value of the closing inventory (7 marks) c. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April marks) D. Reconcile the net profits for March and April (3 marks) Comment on the differences of the two systems with respect to: 1. Stock valuations (2 marks) Period profits (2 marks) 22 TOTAL 50 MARKS Ymester