Top Plastics Ltd makes and sells a single product. In January 2022, it produced and sold...

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Top Plastics Ltd makes and sells a single product. In January 2022, it produced and sold 30,000 units. The Information pertaining selling and production costs is as follows: Selling price per unit- -$25 Direct materials cost per unit- -$6 Direct wages per hour- -$9 -$2 -$4 Variable manufacturing overhead per unit- Variable selling expenses per unit- Fixed manufacturing overhead- Fixed admin and distribution costs- Direct manufacturing labour per unit - Required: -$160,000 --$50,000 -20 minutes (a) Determine product costs under Marginal costing (score, 4%) (b) Determine product costs under Absorption costing (score, 4%) (c) Prepare income statements for January 2022 using: (i) Marginal costing (variable costing) (score, 9%) (ii) Absorption costing (score, 9%) (d) Which costing technique is recommend for external financial reporting? Suggest reasons to support your answer Top Plastics Ltd makes and sells a single product. In January 2022, it produced and sold 30,000 units. The Information pertaining selling and production costs is as follows: Selling price per unit- -$25 Direct materials cost per unit- -$6 Direct wages per hour- -$9 -$2 -$4 Variable manufacturing overhead per unit- Variable selling expenses per unit- Fixed manufacturing overhead- Fixed admin and distribution costs- Direct manufacturing labour per unit - Required: -$160,000 --$50,000 -20 minutes (a) Determine product costs under Marginal costing (score, 4%) (b) Determine product costs under Absorption costing (score, 4%) (c) Prepare income statements for January 2022 using: (i) Marginal costing (variable costing) (score, 9%) (ii) Absorption costing (score, 9%) (d) Which costing technique is recommend for external financial reporting? Suggest reasons to support your answer

Answer rating: 100% (QA)

Solution a Product cost under marginal costing Particu... View the full answer