The company Marinakis EPE started its activities on January 1, 2023. The administrators do not have a
Question:
The company Marinakis EPE started its activities on January 1, 2023. The administrators do not have a clear picture of which cost system to follow. They list data below and ask you to calculate with both methods the results.
€ Per unit
Raw materials 5
Direct work 2.5
General Variable costs 1
Fixed production costs have been calculated based on normal production of 40,000 units per month and amount to €20,000. Fixed sales and distribution costs amount to €10,000 per month. The selling price is €30 per unit and the variable selling expenses are 10% of sales. Production and sales figures for the months of January and February 2023 are given:
January February
Production(units) 40,000 44,000
Sales (units) 36,000 42,000
Note there was no inventory on January 1st.
Present the income statement with direct costing and full costing for January and February.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill