The following details have been extracted from the budget of Gold Plc: Selling price per unit...

 

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The following details have been extracted from the budget of Gold Plc: Selling price per unit $200 Variable production cost per unit 75 Fixed production cost per unit 40 The budgeted fixed production cost per unit was based on a normal capacity of 12,000 units per month. Actual details for the months of Nov and Dec are given below: Production volume (units) Sales volume (units) Selling price per unit Variable production cost per unit Total fixed production costs There was no closing inventory at the end of Oct, 2020. Nov 2020 11,000 10,800 $185 $75 $450,000 Dec 2020 12,500 12,200 $210 $75 $470,000 Required: a) Calculate the actual profit for Nov and Dec using absorption costing. Assume that any under-/over-absorption of fixed overheads is debited/credited to the income statement each month. b) Calculate the actual profit for Nov and Dec using marginal costing. c) Prepare a statement reconciling the profit figures calculated for the month of Nov and Dec under absorption and marginal costing? The following details have been extracted from the budget of Gold Plc: Selling price per unit $200 Variable production cost per unit 75 Fixed production cost per unit 40 The budgeted fixed production cost per unit was based on a normal capacity of 12,000 units per month. Actual details for the months of Nov and Dec are given below: Production volume (units) Sales volume (units) Selling price per unit Variable production cost per unit Total fixed production costs There was no closing inventory at the end of Oct, 2020. Nov 2020 11,000 10,800 $185 $75 $450,000 Dec 2020 12,500 12,200 $210 $75 $470,000 Required: a) Calculate the actual profit for Nov and Dec using absorption costing. Assume that any under-/over-absorption of fixed overheads is debited/credited to the income statement each month. b) Calculate the actual profit for Nov and Dec using marginal costing. c) Prepare a statement reconciling the profit figures calculated for the month of Nov and Dec under absorption and marginal costing?

Answer rating: 100% (QA)

A Absorption Costing Profit Calculation 1 November 2020 Sales Revenue 185 10800 1998000 Variable Pro... View the full answer